Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Entity Registrant Name | Rhino Resource Partners LP | |
Entity Central Index Key | 0001490630 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Common Units [Member] | ||
Entity Common Stock, Shares Outstanding | 13,098,353 | |
Subordinated Units [Member] | ||
Entity Common Stock, Shares Outstanding | 1,143,171 | |
Series A Preferred Units [Member] | ||
Entity Common Stock, Shares Outstanding | 1,500,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,004 | $ 6,170 |
Accounts receivable, net of allowance for doubtful accounts ($-0- and $0.7 million as of September 30, 2019 and December 31, 2018, respectively.) | 11,788 | 12,481 |
Receivable-other | 2,960 | |
Inventories | 18,410 | 6,118 |
Advance royalties, current portion | 4 | 8 |
Investment in equity securities | 1,872 | |
Prepaid expenses and other | 3,272 | 2,660 |
Current assets held for sale | 1,602 | 3,748 |
Total current assets | 46,040 | 33,057 |
PROPERTY, PLANT AND EQUIPMENT: | ||
At cost, including coal properties, mine development and construction costs | 376,640 | 367,184 |
Less accumulated depreciation, depletion and amortization | (254,754) | (247,662) |
Net property, plant and equipment | 121,886 | 119,522 |
Operating lease right-of-use assets (net) | 11,926 | |
Advance royalties, net of current portion | 6,644 | 6,587 |
Deposits - Workers' Compensation and Surety Programs | 7,943 | 8,266 |
Other non-current assets | 24,849 | 24,967 |
Non-current assets held for sale | 6,517 | 56,219 |
TOTAL | 225,805 | 248,618 |
CURRENT LIABILITIES: | ||
Accounts payable | 21,821 | 10,413 |
Accrued expenses and other | 11,833 | 8,650 |
Accrued preferred distributions | 900 | 3,210 |
Current portion of operating lease liabilities | 3,260 | |
Current portion of long-term debt | 4,445 | 2,174 |
Current portion of asset retirement obligations | 465 | 465 |
Current liabilities held for sale | 6,921 | 5,229 |
Total current liabilities | 49,645 | 30,141 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net | 28,447 | 22,458 |
Asset retirement obligations, net of current portion | 20,565 | 17,116 |
Operating lease liabilities, net of current portion | 8,300 | |
Other non-current liabilities | 42,164 | 41,500 |
Non-current liabilities held for sale | 968 | |
Total non-current liabilities | 99,476 | 82,042 |
Total liabilities | 149,121 | 112,183 |
COMMITMENTS AND CONTINGENCIES (NOTE 15) | ||
PARTNERS' CAPITAL: | ||
Limited partners | 56,004 | 115,505 |
General partner | 8,542 | 8,792 |
Preferred partners | 15,000 | 15,000 |
Investment in Royal common stock (NOTE 13) | (4,126) | (4,126) |
Common unit warrants | 1,264 | 1,264 |
Total partners' capital | 76,684 | 136,435 |
TOTAL | $ 225,805 | $ 248,618 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 700 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Total revenues | $ 42,266 | $ 60,037 | $ 140,503 | $ 144,540 |
COSTS AND EXPENSES: | ||||
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 38,389 | 47,061 | 124,662 | 120,923 |
Freight and handling costs | 1,373 | 5,849 | 4,305 | 8,225 |
Depreciation, depletion and amortization | 3,525 | 3,655 | 10,511 | 10,841 |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 5,450 | 2,705 | 11,588 | 8,120 |
(Gain) on sale/disposal of assets, net | 9 | (788) | (6,651) | (7,222) |
Total costs and expenses | 48,746 | 58,482 | 144,415 | 140,887 |
INCOME/(LOSS) FROM OPERATIONS | (6,480) | 1,555 | (3,912) | 3,653 |
INTEREST AND OTHER (EXPENSE)/INCOME: | ||||
Interest expense and other | (1,872) | (2,831) | (5,308) | (6,629) |
Interest income and other | 8 | 8 | 7 | |
Total interest and other (expense) | (1,864) | (2,831) | (5,300) | (6,622) |
NET (LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | (8,344) | (1,276) | (9,212) | (2,969) |
INCOME TAXES | ||||
NET (LOSS) FROM CONTINUING OPERATIONS | (8,344) | (1,276) | (9,212) | (2,969) |
DISCONTINUED OPERATIONS (NOTE 4) | ||||
Loss from discontinued operations | (43,340) | (3,254) | (49,639) | (7,417) |
NET (LOSS) | (51,684) | (4,530) | (58,851) | (10,386) |
Other comprehensive income: | ||||
Fair value adjustment for investment | (506) | 3,874 | ||
Reclass for disposition | (6,621) | |||
Total other comprehensive income | (506) | (2,747) | ||
COMPREHENSIVE (LOSS) | (51,684) | (5,036) | (58,851) | (13,133) |
General Partner's [Member] | ||||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||||
NET (LOSS) FROM CONTINUING OPERATIONS | (36) | (10) | (42) | (20) |
DISCONTINUED OPERATIONS (NOTE 4) | ||||
Loss from discontinued operations | (181) | (14) | (207) | (31) |
NET (LOSS) | (217) | (24) | (249) | (51) |
Common Unitholders' [Member] | ||||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||||
NET (LOSS) FROM CONTINUING OPERATIONS | (7,917) | (2,248) | (9,262) | (4,355) |
DISCONTINUED OPERATIONS (NOTE 4) | ||||
Loss from discontinued operations | (39,695) | (2,980) | (45,463) | (6,789) |
NET (LOSS) | $ (47,612) | $ (5,228) | $ (54,725) | $ (11,144) |
Other comprehensive income: | ||||
Net (loss)/income per unit from continuing operations, basic | $ (0.60) | $ (0.17) | $ (0.71) | $ (0.34) |
Net (loss)/income per unit from discontinued operations, basic | (3.03) | (0.23) | (3.47) | (0.52) |
Net (loss)/income per unit, basic | (3.63) | (0.40) | (4.18) | (0.86) |
Net (loss)/income per unit from continuing operations, diluted | (0.60) | (0.17) | (0.71) | (0.34) |
Net (loss)/income per unit from discontinued operations, diluted | (3.03) | (0.23) | (3.47) | (0.52) |
Net (loss)/ income per unit, diluted | $ (3.63) | $ (0.40) | $ (4.18) | $ (0.86) |
Weighted average number of limited partner units outstanding, basic | 13,098,000 | 13,098,000 | 13,098,000 | 13,035,000 |
Weighted average number of limited partner units outstanding, diluted | 13,098,000 | 13,098,000 | 13,098,000 | 13,035,000 |
Subordinated Unitholders' [Member] | ||||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||||
NET (LOSS) FROM CONTINUING OPERATIONS | $ (691) | $ (197) | $ (808) | $ (382) |
DISCONTINUED OPERATIONS (NOTE 4) | ||||
Loss from discontinued operations | (3,464) | (260) | (3,969) | (597) |
NET (LOSS) | $ (4,155) | $ (457) | $ (4,777) | $ (979) |
Other comprehensive income: | ||||
Net (loss)/income per unit from continuing operations, basic | $ (0.60) | $ (0.17) | $ (0.71) | $ (0.34) |
Net (loss)/income per unit from discontinued operations, basic | (3.03) | (0.23) | (3.47) | (0.52) |
Net (loss)/income per unit, basic | (3.63) | (0.40) | (4.18) | (0.86) |
Net (loss)/income per unit from continuing operations, diluted | (0.60) | (0.17) | (0.71) | (0.34) |
Net (loss)/income per unit from discontinued operations, diluted | (3.03) | (0.23) | (3.47) | (0.52) |
Net (loss)/ income per unit, diluted | $ (3.63) | $ (0.40) | $ (4.18) | $ (0.86) |
Weighted average number of limited partner units outstanding, basic | 1,143,000 | 1,146,000 | 1,143,000 | 1,146,000 |
Weighted average number of limited partner units outstanding, diluted | 1,143,000 | 1,146,000 | 1,143,000 | 1,146,000 |
Preferred Unitholders' [Member] | ||||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||||
NET (LOSS) FROM CONTINUING OPERATIONS | $ 300 | $ 1,179 | $ 900 | $ 1,788 |
DISCONTINUED OPERATIONS (NOTE 4) | ||||
Loss from discontinued operations | ||||
NET (LOSS) | $ 300 | $ 1,179 | $ 900 | $ 1,788 |
Other comprehensive income: | ||||
Net (loss)/income per unit from continuing operations, basic | $ 0.20 | $ 0.79 | $ 0.60 | $ 1.19 |
Net (loss)/income per unit from discontinued operations, basic | ||||
Net (loss)/income per unit, basic | 0.20 | 0.79 | 0.60 | 1.19 |
Net (loss)/income per unit from continuing operations, diluted | 0.20 | 0.79 | 0.60 | 1.19 |
Net (loss)/income per unit from discontinued operations, diluted | ||||
Net (loss)/ income per unit, diluted | $ 0.20 | $ 0.79 | $ 0.60 | $ 1.19 |
Weighted average number of limited partner units outstanding, basic | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 |
Weighted average number of limited partner units outstanding, diluted | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 |
Coal Sales [Member] | ||||
REVENUES: | ||||
Total revenues | $ 41,821 | $ 59,338 | $ 138,687 | $ 142,635 |
Other Revenues [Member] | ||||
REVENUES: | ||||
Total revenues | $ 445 | $ 699 | $ 1,816 | $ 1,905 |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital (Unaudited) - USD ($) $ in Thousands | Limited Partners Common Capital [Member] | Limited Partners Subordinated Capital [Member] | General Partner Capital [Member] | Preferred Partner Capital [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Other [Member] | Total |
Balance at Dec. 31, 2017 | $ 52,850 | $ 77,383 | $ 8,855 | $ 15,000 | $ 4,220 | $ (2,862) | $ 155,446 |
Balance, shares at Dec. 31, 2017 | 12,994,000 | 1,146,000 | |||||
Net (loss)/income | $ (2,856) | $ (252) | (13) | 300 | (2,821) | ||
Preferred partner distribution earned | (300) | (300) | |||||
Reclass of disposition of Mammoth shares | (2,644) | (2,644) | |||||
Mark-to-market investment in Mammoth | 4,182 | 4,182 | |||||
Balance at Mar. 31, 2018 | $ 49,994 | $ 77,131 | 8,842 | 15,000 | 5,758 | (2,862) | 153,863 |
Balance, shares at Mar. 31, 2018 | 12,994,000 | 1,146,000 | |||||
Balance at Dec. 31, 2017 | $ 52,850 | $ 77,383 | 8,855 | 15,000 | 4,220 | (2,862) | 155,446 |
Balance, shares at Dec. 31, 2017 | 12,994,000 | 1,146,000 | |||||
Net (loss)/income | (10,386) | ||||||
Reclass of disposition of Mammoth shares | (6,621) | ||||||
Mark-to-market investment in Mammoth | 3,874 | ||||||
Balance at Sep. 30, 2018 | $ 41,935 | $ 76,404 | 8,804 | 15,000 | 1,474 | (2,862) | 140,755 |
Balance, shares at Sep. 30, 2018 | 13,098,000 | 1,146,000 | |||||
Balance at Mar. 31, 2018 | $ 49,994 | $ 77,131 | 8,842 | 15,000 | 5,758 | (2,862) | 153,863 |
Balance, shares at Mar. 31, 2018 | 12,994,000 | 1,146,000 | |||||
Net (loss)/income | $ (3,061) | $ 269 | (14) | 309 | (3,035) | ||
Preferred partner distribution earned | (309) | (309) | |||||
Reclass of disposition of Mammoth shares | (3,977) | (3,977) | |||||
Mark-to-market investment in Mammoth | 198 | 198 | |||||
Issuance of units | $ 230 | 230 | |||||
Issuance of units, shares | 104,000 | ||||||
Balance at Jun. 30, 2018 | $ 47,163 | $ 76,862 | 8,828 | 15,000 | 1,979 | (2,862) | 146,970 |
Balance, shares at Jun. 30, 2018 | 13,098,000 | 1,146,000 | |||||
Net (loss)/income | $ (5,228) | $ (457) | (24) | 1,179 | (4,530) | ||
Preferred partner distribution earned | (1,179) | (1,179) | |||||
Mark-to-market investment in Mammoth | (506) | (506) | |||||
Miscellaneous adjustment | (1) | 1 | |||||
Balance at Sep. 30, 2018 | $ 41,935 | $ 76,404 | 8,804 | 15,000 | 1,474 | (2,862) | 140,755 |
Balance, shares at Sep. 30, 2018 | 13,098,000 | 1,146,000 | |||||
Balance at Dec. 31, 2018 | $ 39,324 | $ 76,181 | 8,792 | 15,000 | (2,862) | 136,435 | |
Balance, shares at Dec. 31, 2018 | 13,098,000 | 1,144,000 | |||||
Net (loss)/income | $ (6,941) | $ (606) | (32) | 300 | (7,279) | ||
Preferred partner distribution earned | (300) | (300) | |||||
Balance at Mar. 31, 2019 | $ 32,383 | $ 75,575 | 8,760 | 15,000 | (2,862) | 128,856 | |
Balance, shares at Mar. 31, 2019 | 13,098,000 | 1,144,000 | |||||
Balance at Dec. 31, 2018 | $ 39,324 | $ 76,181 | 8,792 | 15,000 | (2,862) | 136,435 | |
Balance, shares at Dec. 31, 2018 | 13,098,000 | 1,144,000 | |||||
Net (loss)/income | (58,851) | ||||||
Reclass of disposition of Mammoth shares | |||||||
Mark-to-market investment in Mammoth | |||||||
Balance at Sep. 30, 2019 | $ (15,401) | $ 71,405 | 8,542 | 15,000 | (2,862) | 76,684 | |
Balance, shares at Sep. 30, 2019 | 13,098,000 | 1,144,000 | |||||
Balance at Mar. 31, 2019 | $ 32,383 | $ 75,575 | 8,760 | 15,000 | (2,862) | 128,856 | |
Balance, shares at Mar. 31, 2019 | 13,098,000 | 1,144,000 | |||||
Net (loss)/income | $ (172) | $ (15) | (1) | 300 | 112 | ||
Preferred partner distribution earned | (300) | (300) | |||||
Balance at Jun. 30, 2019 | $ 32,211 | $ 75,560 | 8,759 | 15,000 | (2,862) | 128,668 | |
Balance, shares at Jun. 30, 2019 | 13,098,000 | 1,144,000 | |||||
Net (loss)/income | $ (47,612) | $ (4,155) | (217) | 300 | (51,684) | ||
Preferred partner distribution earned | (300) | (300) | |||||
Reclass of disposition of Mammoth shares | |||||||
Mark-to-market investment in Mammoth | |||||||
Balance at Sep. 30, 2019 | $ (15,401) | $ 71,405 | $ 8,542 | $ 15,000 | $ (2,862) | $ 76,684 | |
Balance, shares at Sep. 30, 2019 | 13,098,000 | 1,144,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net (loss) | $ (51,684) | $ (7,279) | $ (4,530) | $ (2,821) | $ (58,851) | $ (10,386) | |
Adjustments to reconcile net (loss) to net cash (used in)/provided by operating activities: | |||||||
Depreciation, depletion and amortization | 16,470 | 16,733 | |||||
Accretion on asset retirement obligations | 957 | 954 | $ 1,269 | ||||
Amortization of advance royalties | 1,534 | 502 | |||||
Amortization of debt issuance costs | 1,582 | 1,432 | |||||
Provision for doubtful accounts | 294 | ||||||
Amortization of debt discount | 316 | 316 | |||||
Loss on retirement of advance royalties | 244 | 108 | |||||
(Gain)/loss on sale/disposal of assets-net | (6,220) | (719) | |||||
(Gain) on sale of Mammoth shares | (433) | (6,498) | |||||
Loss on impairment of assets | 38,633 | ||||||
Equity based compensation | 230 | ||||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 5,775 | (5,223) | |||||
Inventories | (11,837) | 3,319 | |||||
Advance royalties | (2,380) | (904) | |||||
Prepaid expenses and other assets | (658) | (1,618) | |||||
Accounts payable | 9,134 | 8,865 | |||||
Accrued expenses and other liabilities | 2,492 | 391 | |||||
Asset retirement obligations | (66) | (259) | |||||
Net cash (used in)/provided by operating activities | (3,308) | 7,537 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to property, plant, and equipment | (9,263) | (20,525) | |||||
Asset acquisition | (1,385) | ||||||
Proceeds from sales of property, plant, and equipment | 1,756 | 4,802 | |||||
Proceeds from sale of Pennyrile assets | 7,263 | ||||||
Proceeds from sale of Mammoth shares | 2,304 | 11,887 | |||||
Net cash provided by/(used in) investing activities | 675 | (3,836) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayments on long-term debt | (1,125) | (10,208) | |||||
Repayments on other debt | (1,224) | (540) | |||||
Repayments on finance leases | (3) | ||||||
Proceeds from financing agreement | 10,000 | 5,000 | |||||
Proceeds from issuance of other debt | 1,772 | 1,622 | |||||
Deposit for workers' compensation and surety programs | 323 | (8,209) | |||||
Payments of debt issuance costs | (2,068) | (879) | |||||
Preferred distributions paid | (3,210) | (6,039) | |||||
Net cash provided by/(used in) financing activities | 4,465 | (19,253) | |||||
NET (DECREASE) IN CASH, CASH EQUIVALENTS | 1,832 | (15,552) | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | $ 6,172 | $ 21,120 | 6,172 | 21,120 | 21,120 | ||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | $ 8,004 | $ 5,568 | $ 8,004 | $ 5,568 | $ 6,172 |
Basis of Presentation and Organ
Basis of Presentation and Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | 1. BASIS OF PRESENTATION AND ORGANIZATION Basis of Presentation and Principles of Consolidation. Cash, Cash Equivalents and Restricted Cash. Unaudited Interim Financial Information. Organization. Through a series of transactions completed in the first quarter of 2016, Royal Energy Resources, Inc. (“Royal”) acquired a majority ownership and control of the Partnership and 100% ownership of the Partnership’s general partner. The Partnership’s common units trade on the OTCQB Marketplace under the ticker symbol “RHNO.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies and General | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and General | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL Revenue Recognition. Revenue from Contracts with Customers (Topic 606) Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Partnership carefully reviews the facts and circumstances of each transaction and does not recognize revenue until the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. Debt Issuance Costs. Recently Issued Accounting Standards . Leases (Topic 842) In July 2017, the FASB issued ASU 2017-11, “Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480), I. Derivatives and Hedging (Topic 815): Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.” |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | 3. ACQUISTION Blackjewel Assignment Agreement On August 14, 2019, Jewell Valley Mining LLC (“Jewell Valley”), a wholly owned subsidiary of the Partnership, entered into a general assignment and assumption agreement and bill of sale (the “Assignment Agreement”) with Blackjewel L.L.C., Blackjewel Holdings L.L.C., Revelation Energy Holdings, LLC, Revelation Management Corp., Revelation Energy, LLC, Dominion Coal Corporation, Harold Keene Coal Co. LLC, Vansant Coal Corporation, Lone Mountain Processing LLC, Powell Mountain Energy, LLC, and Cumberland River Coal LLC (together, “Blackjewel”) to purchase certain assets from Blackjewel for cash consideration of $850,000 plus an additional royalty of $250,000 that is payable within one year from the date of the purchase, as well as the assumption of associated reclamation obligations. The transaction costs associated with the Assignment Agreement were $103,577. The assets that are subject of the Assignment Agreement consist of three underground mines in Virginia that were actively producing coal prior to Blackjewel’s filing for relief under Chapter 11 of the United States Bankruptcy Code, along with a preparation plant, rail loadout facility, related mineral and surface rights and infrastructure and certain purchase contracts to be assumed at Jewell Valley’s option. As of September 30, 2019, the Partnership is still in the process of hiring qualified personnel to operate the assets purchased from Blackjewel since the Partnership did not retain any of the existing Blackjewel workforce. The Partnership is also still refurbishing the assets before resuming mining operations. The Partnership plans to resume mining operations at one of the mines in the fourth quarter of 2019. The operating results for Jewell Valley will be reported as part of the Partnership’s Central Appalachia business segment. The Partnership reviewed the appropriate guidance regarding ASU 2017-01, Business Combinations (Topic 805) The Assignment Agreement was funded by borrowings from the Partnership’s delayed draw feature of the Financing Agreement (as defined below). Please refer to Note 10 for additional details of the Financing Agreement. The following table summarizes the assets acquired and liabilities assumed as of the acquisition date: (in thousands) Property, plant and equipment $ 3,853 Land 378 Asset retirement obligation (2,596 ) Net assets acquired $ 1,635 Initial cash consideration $ 850 Mineral cure payments 431 Transaction costs 104 Cash consideration 1,385 Royalty payable 250 Total consideration $ 1,635 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS Pennyrile Asset Purchase Agreement On September 6, 2019, the Partnership and Alliance Coal, LLC (“Buyer”) and Alliance Resource Partners, L.P. (“Buyer Parent”) entered into an Asset Purchase Agreement (the “Pennyrile APA”) pursuant to which the Partnership sold to Buyer all of the real property, permits, equipment and inventory and certain other assets associated with its Pennyrile mine complex, as well as the buyer’s assumption of the Pennyrile reclamation obligation, in exchange for approximately $3.7 million, subject to certain adjustments. Pursuant to the Pennyrile APA, the Partnership retains liability for certain employee claims, subsidence claims arising from pre-closing mining operations, MSHA liabilities and certain other matters. The Pennyrile APA also provides that the Buyer shall have the right to conduct diligence on the Pennyrile mine complex and may contest the fair market value of the purchased assets or the estimate of the costs of the assumed liabilities following such diligence investigation. In the event the Buyer does contest such amounts, the parties will attempt to resolve the dispute and to the extent they cannot, will submit the matter to a third party to make a final determination with respect to such matters, and will adjust the purchase price accordingly. The parties have made customary representations, warranties and covenants in the Pennyrile APA. The closing of the transactions contemplated by the Asset Purchase Agreement are subject to a number of closing conditions, including, among others, the performance of applicable covenants and accuracy of representations and warranties and absence of material adverse changes in the condition of the Pennyrile mine complex. Subject to the satisfaction of closing conditions, the transaction contemplated by the Pennyrile APA is expected to close in the fourth quarter of 2019. Coal Supply Asset Purchase Agreement On September 6, 2019, the Partnership, the Buyer and the Buyer Parent entered into an Asset Purchase Agreement for the sale and assignment of certain coal supply agreements associated with the Pennyrile mine complex (the “Coal Supply APA”) in exchange for approximately $7.3 million. The Coal Supply APA includes customary representations of the parties thereto and indemnification for losses arising from the breaches of such representations and for liabilities arising during the period in which the relevant parties were not party to the coal supply agreements. The transactions contemplated by the Coal Supply APA closed upon the execution thereof. Discontinued Operations The Pennyrile operating results for the three and nine months ended September 30, 2019 and 2018 are recorded as discontinued operations on the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income including a $38.6 million impairment loss for the three and nine months ended September 30, 2019 associated with the sale. The current and non-current assets and liabilities previously related to Pennyrile have been reclassified to the appropriate held for sale categories on the Partnership’s unaudited condensed consolidated statement of financial position at December 31, 2018. Major assets and liabilities of discontinued operations for Pennyrile Energy LLC as of September 30, 2019 and December 31, 2018 are summarized as follows: September 30, 2019 December 31, 2018 (in thousands) Carrying amount of major classes of assets included as part Cash and cash equivalents $ - $ 1 Accounts receivable 1,428 2,645 Accounts receivable-other 174 - Inventories - 455 Advance royalties - 540 Prepaid expenses and other - 107 Total current assets of the disposal group classified as held for sale in the statement of financial position $ 1,602 $ 3,748 Property and equipment (net) $ 6,517 $ 54,338 Advance royalties, net of current portion - 1,438 Other non-current assets - 443 Total non-current assets of the disposal group classified as held for sale in the statement of financial position $ 6,517 $ 56,219 Carrying amount of major classes of liabilities included as part Accounts payable $ 3,389 $ 3,772 Accrued expenses and other 1,332 1,457 Asset retirement obligations, current portion 2,200 - Total current liabilities of the disposal group classified as held for sale in the statement of financial position $ 6,921 $ 5,229 Asset retirement obligations, net of current portion $ - $ 968 Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 968 Major components of net loss from discontinued operations for Pennyrile Energy LLC for three months ended September 30, 2019 and 2018 are summarized as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Major line items constituting loss from discontinued operations for the Pennyrile Energy LLC disposal: Coal sales $ 8,920 $ 12,529 $ 35,009 $ 37,748 Total revenues 8,920 12,529 35,009 37,748 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) 11,797 13,725 39,928 39,108 Depreciation, depletion and amortization 1,778 1,974 5,959 5,892 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) 52 80 130 161 Asset impairment and related charges 38,633 - 38,633 - (Gain) on sale/disposal of assets, net - 4 (2 ) 4 Total costs, expenses and other 52,260 15,783 84,648 45,165 (Loss) from discontinued operations before income taxes for the Pennyrile Energy LLC disposal (43,340 ) (3,254 ) (49,639 ) (7,417 ) Income taxes - - - - Net (loss) from discontinued operations $ (43,340 ) $ (3,254 ) $ (49,639 ) $ (7,417 ) Cash Flows. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expenses And Other Current Assets | |
Prepaid Expenses and Other Current Assets | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 (in thousands) Other prepaid expenses $ 1,015 $ 865 Prepaid insurance 1,869 1,397 Prepaid leases 82 92 Supply inventory 306 306 Total $ 3,272 $ 2,660 On June 28, 2019, the Partnership entered into a settlement agreement with a third party which allowed the third party to maintain certain pipelines pursuant to designated permits at our Central Appalachia operations. The agreement required the third party to pay the Partnership $7.0 million in consideration. The Partnership received $4.2 million on July 3, 2019 with the balance of $2.8 million due on or before February 29, 2020. At September 30, 2019, the $2.8 million receivable was recorded in Receivable –Other on the Partnership’s unaudited condensed consolidated statements of financial position. A gain of $6.9 million was recorded on the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income during the second quarter of 2019. The Partnership acquired 568,794 shares of Mammoth Energy Services, Inc. (NASDAQ: TUSK)(“Mammoth Inc.”) through a series of transactions in years prior to 2018. As of December 31, 2018, the Partnership owned 104,100 shares of Mammoth Inc., which were recorded at fair market value as a current asset on the Partnership’s unaudited condensed consolidated statements of financial position. During the first quarter of 2019, the Partnership sold its 104,100 shares for net consideration of approximately $2.3 million. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including coal properties and mine development and construction costs, as of September 30, 2019 and December 31, 2018 are summarized by major classification as follows: September 30, December 31, Useful Lives 2019 2018 (in thousands) Land and land improvements $ 10,082 $ 13,181 Mining and other equipment and related facilities 2 - 20 Years 256,582 253,489 Mine development costs 1 - 15 Years 41,560 39,967 Coal properties 1 - 15 Years 58,358 58,424 Construction work in process 10,058 2,123 Total 376,640 367,184 Less accumulated depreciation, depletion and amortization (254,754 ) (247,662 ) Net $ 121,886 $ 119,522 Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs and amortization expense for asset retirement costs for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 2,525 $ 2,622 $ 7,526 $ 7,740 Depletion expense for coal properties 419 418 1,247 1,264 Amortization expense for mine development costs 517 515 1,543 1,506 Amortization expense for asset retirement costs 64 100 195 331 Total $ 3,525 $ 3,655 $ 10,511 $ 10,841 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 7. LEASES The Partnership leases various mining, transportation and other equipment under operating and finance leases. The leases have remaining lease terms of 1 year to 9 years, some of which include options to extend the leases for up to 15 years. The Partnership determines if an arrangement is a lease at inception. Some of the leases include both lease and non-lease components which are accounted for as a single lease component as the Partnership has elected the practical expedient to combine these components for all leases. Operating leases are included in operating lease right-of-use (“ROU”) assets, current liabilities and non-current liabilities. Finance leases are included in plant, property and equipment, current liabilities and long-term liabilities. ROU assets represent the Partnership’s right to use an underlying asset for the lease term and lease liabilities represent the Partnership’s obligation to make lease payments related to the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Partnership utilizes the implicit rate in the lease, if determinable, at the commencement date of the lease to determine the present value of the lease payments. If the implicit rate is not determinable, the Partnership utilizes its incremental borrowing rate at the commencement date of the lease to determine the present value of the lease payments. The Partnership’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Partnership will exercise the option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Supplemental information related to leases was as follows: September 30, 2019 (in thousands) Operating leases Operating lease right-of use assets $ 11,926 Operating lease liabilities-current $ 3,260 Operating lease liabilities-long-term 8,300 Total operating lease liabilities $ 11,560 Finance leases Property. Plant and Equipment, gross $ 10 Accumulated depreciation (4 ) Total Property, Plant and Equipment, net $ 6 Finance leases - current portion $ 4 Finance leases - noncurrent portion 3 Total finance lease obligation $ 7 Weighted Average Discount Rates and Lease Terms September 30, 2019 Weighted Average Discount Rate Operating leases 7.0 % Finance leases 7.0 % Weighted Average Lease Term Operating leases 5.01 years Finance leases 1.53 years Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,924 Operating cash flows for finance leases $ - Financing cash flows for finance leases $ 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 14,267 Finance leases $ 10 Maturities of lease liabilities are as follows: Year ending December 31, Operating leases Finance leases (in thousands) 2019 (excluding the nine months ended September 30, 2019) $ 982 $ 2 2020 3,730 5 2021 2,908 - 2022 1,895 - 2023 929 - 2024 908 Thereafter 2,361 - Total lease payments 13,713 7 Less: imputed interest (2,153 ) - Total $ 11,560 $ 7 The components of lease expense were as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Operating lease cost $ 981 $ 2,943 Finance lease cost: Amortization of right-of-use assets $ 1 $ 3 Interest on lease liabilities - - Total finance lease cost $ 1 $ 3 |
Other Non-Current Assets
Other Non-Current Assets | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 8. OTHER NON-CURRENT ASSETS Other non-current assets as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Deposits and other $ 704 $ 859 Due (to) Rhino GP (47 ) (84 ) Non-current receivable 24,192 24,192 Total $ 24,849 $ 24,967 Non-current receivable Balance Sheet |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Payroll, bonus and vacation expense $ 2,041 $ 1,529 Non-income taxes 2,757 1,794 Royalty expenses 2,266 1,368 Accrued interest 85 35 Health claims 905 868 Workers’ compensation & pneumoconiosis 1,900 1,900 Other 1,879 1,156 Total $ 11,833 $ 8,650 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 10. DEBT Debt as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Note payable -Financing Agreement $ 37,923 $ 29,048 Note payable-other debt 1,070 522 Finance lease obligation 7 - Net unamortized debt issuance costs (5,581 ) (4,095 ) Net unamortized original issue discount (527 ) (843 ) Total 32,892 24,632 Less current portion (4,445 ) (2,174 ) Long-term debt $ 28,447 $ 22,458 Financing Agreement On December 27, 2017, the Operating Company, a wholly-owned subsidiary of the Partnership, certain of the Operating Company’s subsidiaries identified as Borrowers (together with the Operating Company, the “Borrowers”), the Partnership and certain other Operating Company subsidiaries identified as Guarantors (together with the Partnership, the “Guarantors”), entered into a Financing Agreement (the “Financing Agreement”) with Cortland Capital Market Services LLC, as Collateral Agent and Administrative agent, CB Agent Services LLC, as Origination Agent and the parties identified as Lenders therein (the “Lenders”), pursuant to which the Lenders agreed to provide the Borrowers with a multi-draw term loan in the original aggregate principal amount of $80 million, subject to the terms and conditions set forth in the Financing Agreement. The total principal amount is divided into a $40 million commitment, the conditions of which were satisfied at the execution of the Financing Agreement (the “Effective Date Term Loan Commitment”) and a $40 million additional commitment that was contingent upon the satisfaction of certain conditions precedent specified in the Financing Agreement (“Delayed Draw Term Loan Commitment”). As of September 30, 2019, we have utilized $15 million of the $40 million additional commitment, which results in $25 million of the additional commitment remaining. Loans made pursuant to the Financing Agreement are secured by substantially all of the Borrowers’ and Guarantors’ assets. The Financing Agreement originally had a termination date of December 27, 2020, which was amended to December 27, 2022 per the fifth amendment to the Financing Agreement discussed further below. Loans made pursuant to the Financing Agreement are, at the Operating Company’s option, either “Reference Rate Loans” or “LIBOR Rate Loans.” Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the “bank prime loan” rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if the Operating Company has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at the Operating Company’s option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the “PIK Option”). Commencing December 31, 2018, the principal for each loan made under the Financing Agreement will be payable on a quarterly basis in an amount equal to $375,000 per quarter, with all remaining unpaid principal and accrued and unpaid interest originally due on December 27, 2020 (see discussion of fifth amendment below). In addition, the Borrowers must make certain prepayments over the term of any loans outstanding, including: (i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to (i) certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by the Operating Company, and (iii) audit and collateral monitoring fees and origination and exit fees. The Financing Agreement requires the Borrowers and Guarantor to comply with several affirmative covenants at any time loans are outstanding, including, among others: (i) the requirement to deliver monthly, quarterly and annual financial statements, (ii) the requirement to periodically deliver certificates indicating, among other things, (a) compliance with terms of the Financing Agreement and ancillary loan documents, (b) inventory, accounts payable, sales and production numbers, (c) the calculation of the Collateral Coverage Amount (as that term is defined in the Financing Agreement), (d) projections for the Partnership and its subsidiaries and (e) coal reserve amounts; (iii) the requirement to notify the Administrative Agent of certain events, including events of default under the Financing Agreement, dispositions, entry into material contracts, (iv) the requirement to maintain insurance, obtain permits, and comply with environmental and reclamation laws (v) the requirement to sell up to $5.0 million of shares in Mammoth Inc. and use the net proceeds therefrom to prepay outstanding term loans, which was completed during the first half of 2018 and (vi) establish and maintain cash management services and establish a cash management account and deliver a control agreement with respect to such account to the Collateral Agent. The Financing Agreement also contains negative covenants that restrict the Borrowers and Guarantors ability to, among other things: (i) incur liens or additional indebtedness or make investments or restricted payments, (ii) liquidate or merge with another entity, or dispose of assets, (iii) change the nature of their respective businesses; (iv) make capital expenditures in excess, or, with respect to maintenance capital expenditures, lower than, specified amounts, (v) incur restrictions on the payment of dividends, (vi) prepay or modify the terms of other indebtedness, (vii) permit the Collateral Coverage Amount to be less than the outstanding principal amount of the loans outstanding under the Financing Agreement or (viii) permit the trailing six month Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00 commencing with the six-month period ending June 30, 2018. The Financing Agreement contains customary events of default, following which the Collateral Agent may, at the request of lenders, terminate or reduce all commitments and accelerate the maturity of all outstanding loans to become due and payable immediately together with accrued and unpaid interest thereon and exercise any such other rights as specified under the Financing Agreement and ancillary loan documents. The Partnership entered into a warrant agreement with certain parties that are also parties to the Financing Agreement discussed above. (See Note 13 for further discussion) On April 17, 2018, Rhino amended its Financing Agreement to allow for certain activities including a sale leaseback of certain pieces of equipment, the extension of the due date for lease consents required under the Financing Agreement to June 30, 2018 and the distribution to holders of the Series A preferred units of $6.0 million (accrued in the consolidated financial statements at December 31, 2017). Additionally, the amendments provided that the Partnership could sell additional shares of Mammoth Inc. stock and retain 50% of the proceeds with the other 50% used to reduce debt. The Partnership reduced its outstanding debt by $3.4 million with proceeds from the sale of Mammoth Inc. stock in the second quarter of 2018. On July 27, 2018, the Partnership entered into a consent with its Lenders related to the Financing Agreement. The consent included the lenders agreement to make a $5 million loan from the Delayed Draw Term Loan Commitment, which was repaid in full on October 26, 2018 pursuant to the terms of the consent. The consent also included a waiver of the requirements relating to the use of proceeds of any sale of the shares of Mammoth Inc. set forth in the consent to the Financing Agreement, dated as of April 17, 2018 and also waived any Event of Default that arose or would otherwise arise under the Financing Agreement for failing to comply with the Fixed Charge Coverage Ratio for the six months ended June 30, 2018. On November 8, 2018, the Partnership entered into a consent with its Lenders related to the Financing Agreement. The consent includes the lenders agreement to waive any Event of Default that arose or would otherwise arise under the Financing Agreement for failing to comply with the Fixed Charge Coverage Ratio for the six months ended September 30, 2018. On December 20, 2018, the Partnership, entered into a limited waiver and consent (the “Waiver”) to the Financing Agreement. The Waiver relates to the sales by the Partnership of certain real property in Western Colorado, the net proceeds of which are required to be used to reduce the Partnership’s debt under the Financing Agreement. As of the date of the Waiver, the Partnership had sold 9 individual lots in smaller transactions. On December 31, 2018, the Partnership used the sale proceeds of approximately $379,000 to reduce the debt. Rather than transmitting net proceeds with respect to each individual transaction, the Partnership and Lenders agreed in principle to delay repayment until an aggregate payment could be made at the end of 2018. The Waiver (i) contains a ratification by the Lenders of the sale of the individual lots to date and waives the associated technical defaults under the Financing Agreement for not making immediate payments of net proceeds therefrom, (ii) permits the sale of certain specified additional lots and (iii) subject to Lender consent, permits the sale of other lots on a going forward basis. The net proceeds of future sales will be held by the Partnership until a later date to be determined by the Lenders. On February 13, 2019, the Partnership entered into a second amendment (the “Amendment”) to the Financing Agreement. The Amendment provided the Lender’s consent for the Partnership to pay a one-time cash distribution on February 14, 2019 to the Series A Preferred Unitholders not to exceed approximately $3.2 million. The Amendment allowed the Partnership to sell its remaining shares of Mammoth Inc. and utilize the proceeds for payment of the one-time cash distribution to the Series A Preferred Unitholders and waived the requirement to use such proceeds to prepay the outstanding principal amount outstanding under the Financing Agreement. The Amendment also waived any Event of Default that has or would otherwise arise under Section 9.01(c) of the Financing Agreement solely by reason of the Borrowers failing to comply with the Fixed Charge Coverage Ratio covenant in Section 7.03(b) of the Financing Agreement for the fiscal quarter ending December 31, 2018. The Amendment includes an amendment fee of approximately $0.6 million payable by the Partnership on May 13, 2019 and an exit fee equal to 1% of the principal amount of the term loans made under the Financing Agreement that is payable on the earliest of (w) the final maturity date of the Financing Agreement, (x) the termination date of the Financing Agreement, (y) the acceleration of the obligations under the Financing Agreement for any reason, including, without limitation, acceleration in accordance with Section 9.01 of the Financing Agreement, including as a result of the commencement of an insolvency proceeding and (z) the date of any refinancing of the term loan under the Financing Agreement. The Amendment amended the definition of the Make-Whole Amount under the Financing Agreement to extend the date of the Make-Whole Amount period to December 31, 2019. On May 8, 2019, the Partnership entered into a third amendment (“Third Amendment”) to the Financing Agreement. The Third Amendment includes the lenders agreement to waive any Event of Default that arose or would otherwise arise under the Financing Agreement for failing to comply with the Fixed Charge Coverage Ratio for the six months ended March 31, 2019. The Third Amendment increases the original exit fee of 3.0% to 6.0%. The original exit fee of 3% was included in the Financing Agreement at the execution date and the increase of the total exit fee to 6% was included as part of the amendment dated February 13, 2019 discussed above and this Third Amendment. The exit fee is applied to the principal amount of the loans made under the Financing Agreement that is payable on the earliest of (a) the final maturity date, (b) the termination date of the Financing agreement for any reason, (c) the acceleration of the obligations in the Financing Agreement for any reason and (d) the date of any refinancing of the term loan under the Financing Agreement. On August 16, 2019, the Partnership entered into a fourth amendment (the “Fourth Amendment”) to the Financing Agreement. The Fourth Amendment provides a $5.0 million term loan provided by the Lenders to the Partnership under the delayed draw feature of the Financing Agreement and extends the period by which an applicable premium payable to the Lenders will be calculated to the final maturity date. On September 6, 2019, the Partnership entered into a fifth amendment (the “Fifth Amendment”) to the Financing Agreement. The Fifth Amendment (i) extends the maturity of the Financing Agreement to December 27, 2022, (ii) provides a $5.0 million term loan provided by the Lenders to the Partnership under the delayed draw feature of the Financing Agreement, (iii) extends the period by which an applicable premium payable to the Lenders will be calculated to December 31, 2021, (iv) modifies certain definitions and concepts to account for the Partnership’s recent acquisition of properties from Blackjewel, (v) permits the disposition of the Pennyrile mining complex and (viii) provides for the payment of additional fees to the Lenders, including a consent fee of $1.0 million, an amendment fee of $825,000 and an increase in the lender exit fee of 1.00% to a total exit fee of 7.00% of the amount of term loans made under the Financing Agreement that is payable at final maturity of the Financing Agreement. At September 30, 2019, the Partnership had $27.9 million of borrowings outstanding at a variable interest rate of Libor plus 10.00% (12.13%), $5.0 million of borrowings outstanding at a variable interest rate of Libor plus 10.00% (12.17%) and $5.0 million of borrowings outstanding at a variable interest rate of Libor plus 10.00% (12.06%). |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 11. ASSET RETIREMENT OBLIGATIONS The changes in asset retirement obligations for the nine months ended September 30, 2019 and the year ended December 31, 2018 are as follows: September 30, 2019 December 31, 2018 (in thousands) Balance at beginning of period (including current portion) $ 17,581 $ 18,662 Accretion expense 957 1,269 Adjustments to the liability from annual recosting and other - (1,083 ) Jewell Valley LLC acquisition 2,596 - Reclassification to held for sale (38 ) (968 ) Liabilities settled (66 ) (299 ) Balance at end of period 21,030 17,581 Less current portion of asset retirement obligation (465 ) (465 ) Long-term portion of asset retirement obligation $ 20,565 $ 17,116 |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 12. EMPLOYEE BENEFITS 401(k) Plans The Operating Company sponsors a defined contribution savings plans for all employees. Under the defined contribution savings plan, the Operating Company matches voluntary contributions of participants up to a maximum contribution based upon a percentage of a participant’s salary with an additional matching contribution possible at the Partnership’s discretion. The expense under these plans for the three and nine months ended September 30, 2019 and 2018 is included in Cost of operations and Selling, general and administrative expense in the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income and was as follows: Three Months Ended Nine months ended 2019 2018 2019 2018 (in thousands) 401(k) plan expense $ 364 $ 323 $ 1,041 $ 903 |
Partners' Capital
Partners' Capital | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Partners' Capital | 13. PARTNERS’ CAPITAL Common Unit Warrants In December 2017, the Partnership entered into a warrant agreement with certain parties that are also parties to the Financing Agreement discussed above. The warrant agreement included the issuance of a total of 683,888 warrants for common units (“Common Unit Warrants”) of the Partnership at an exercise price of $1.95 per unit, which was the closing price of the Partnership’s common units on the OTC market as of December 27, 2017. The Common Unit Warrants have a five year expiration date. The Common Unit Warrants and the Partnership’s common units after exercise are both transferable, subject to applicable US securities laws. The Common Unit Warrant exercise price is $1.95 per unit, but the price per unit will be reduced by future common unit distributions and other further adjustments in price included in the warrant agreement for transactions that are dilutive to the amount of the Partnership’s common units outstanding. The warrant agreement includes a provision for a cashless exercise whereby the warrant holders can receive a net number of common units. Per the warrant agreement, the warrants are detached from the Financing Agreement and fully transferable. The Partnership analyzed the Common Unit Warrants in accordance with the applicable accounting literature and concluded the Common Unit Warrants should be classified as equity. The Partnership allocated the $40.0 million initial proceeds from the Financing Agreement between the Common Unit Warrants and the Financing Agreement based upon their relative fair values. The allocation based upon relative fair values resulted in approximately $1.3 million being recorded for the Common Unit Warrants in the Partner’s Capital equity section and a corresponding discount on Long-term debt, net on the Partnership’s unaudited condensed consolidated statements of financial position. Series A Preferred Units On December 30, 2016, the general partner entered into the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (“Amended and Restated Partnership Agreement”) to create, authorize and issue the Series A preferred units. The Series A preferred units rank senior to all classes or series of equity securities of the Partnership with respect to distribution rights and rights upon liquidation. The holders of the Series A preferred units are entitled to receive annual distributions equal to the greater of (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. “CAM Mining free cash flow” is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnership’s Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnership’s Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of coal tons sold by the Partnership from its Central Appalachia business segment. If the Partnership fails to pay any or all of the distributions in respect of the Series A preferred units, such deficiency will accrue until paid in full and the Partnership will not be permitted to pay any distributions on its Partnership interests that rank junior to the Series A preferred units, including its common units. The Series A preferred units will be liquidated in accordance with their capital accounts and upon liquidation will be entitled to distributions of property and cash in accordance with the balances of their capital accounts prior to such distributions on equity securities that rank junior to the Series A preferred units. The Series A preferred units vote on an as-converted basis with the common units, and the Partnership is restricted from taking certain actions without the consent of the holders of a majority of the Series A preferred units, including: (i) the issuance of additional Series A preferred units, or securities that rank senior or equal to the Series A preferred units; (ii) the sale or transfer of CAM Mining or a material portion of its assets; (iii) the repurchase of common units, or the issuance of rights or warrants to holders of common units entitling them to purchase common units at less than fair market value; (iv) consummation of a spin off; (v) the incurrence, assumption or guaranty of indebtedness for borrowed money in excess of $50.0 million except indebtedness relating to entities or assets that are acquired by the Partnership or its affiliates that is in existence at the time of such acquisition or (vi) the modification of CAM Mining’s accounting principles or the financial or operational reporting principles of the Partnership’s Central Appalachia business segment, subject to certain exceptions. The Partnership has the option to convert the outstanding Series A preferred units at any time on or after the time at which the amount of aggregate distributions paid in respect of each Series A preferred unit exceeds $10.00 per unit. Each Series A preferred unit will convert into a number of common units equal to the quotient (the “Series A Conversion Ratio”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Series A Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the common units for the preceding 90 trading days (the “VWAP”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Series A preferred units will convert into common units at the then applicable Series A Conversion Ratio. During the first quarter of 2019, the Partnership paid $3.2 million to the holders of Series A preferred units for distributions earned for the year ended December 31, 2018. During the first quarter of 2018, the Partnership paid the holders of Series A preferred units $6.0 million in distributions earned for the year ended December 31, 2017. The Partnership has accrued approximately $0.9 million for distributions to holders of the Series A preferred units for the nine months ended September 30, 2019. Investment in Royal Common Stock On September 1, 2017, Royal elected to convert certain obligations to the Partnership totaling $4.1 million to shares of Royal common stock. Royal issued 914,797 shares of its common stock to the Partnership at a conversion price of $4.51 per share. The price per share was equal to the outstanding balance multiplied by seventy-five percent (75%) of the volume-weighted average closing price of Royal’s common stock for the 90 days preceding the date of conversion (“Royal VWAP”), subject to a minimum Royal VWAP of $3.50 and a maximum Royal VWAP of $7.50. The Partnership recorded the $4.1 million conversion as Investment in Royal common stock in the Partners’ Capital section of the Partnership’s unaudited condensed consolidated statements of financial position since Royal does not have significant economic activity apart from its investment in the Partnership. Other Comprehensive Income In accordance with Accounting Standards Codification (“ASU”) 2016-01, which was effective for fiscal years that began after December 15, 2017, the Partnership ceased recording fair market adjustments for the shares it owns in Mammoth Inc. in Other Comprehensive Income during the fourth quarter of 2018. Upon adoption during the fourth quarter of 2018, the Partnership recorded a $4.2 million reclassification from Other Comprehensive Income to Partners’ Capital relating to its Mammoth Inc. shares that had a readily determinable fair value. Accumulated Distribution Arrearages Pursuant to the Partnership’s partnership agreement, the Partnership’s common units accrue arrearages every quarter when the distribution level is below the minimum level of $4.45 per unit. Beginning with the quarter ended June 30, 2015 and continuing through the quarter ended September 30, 2019, the Partnership has suspended the cash distribution on its common units. For each of the quarters ended September 30, 2014, December 31, 2014 and March 31, 2015, the Partnership announced cash distributions per common unit at levels lower than the minimum quarterly distribution. The Partnership has not paid any distribution on its subordinated units for any quarter after the quarter ended March 31, 2012. As of September 30, 2019, the Partnership had accumulated arrearages of $848.7 million. |
Earnings Per Unit ('EPU')
Earnings Per Unit ('EPU') | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit ("EPU") | 14. EARNINGS PER UNIT (“EPU”) The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the periods ended September 30, 2019 and 2018: Three months ended September 30, 2019 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (36 ) $ (7,917 ) $ (691 ) $ 300 Net (loss) from discontinued operations (181 ) (39,695 ) (3,464 ) - Total interest in net (loss)/income $ (217 ) $ (47,612 ) $ (4,155 ) $ 300 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,143 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,143 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.60 ) $ (0.60 ) $ 0.20 Net (loss) per unit from discontinued operations n/a (3.03 ) (3.03 ) - Net (loss)/income per common unit, basic n/a $ (3.63 ) $ (3.63 ) $ 0.20 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.60 ) $ (0.60 ) 0.20 Net (loss) per unit from discontinued operations n/a (3.03 ) (3.03 ) - Net (loss)/income per common unit, diluted n/a $ (3.63 ) $ (3.63 ) 0.20 Three months ended September 30, 2018 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (10 ) $ (2,248 ) $ (197 ) $ 1,179 Net (loss) from discontinued operations (14 ) (2,980 ) (260 ) - Total interest in net (loss)/income $ (24 ) $ (5,228 ) $ (457 ) 1,179 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,146 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,146 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.17 ) $ (0.17 ) $ 0.79 Net (loss) per unit from discontinued operations n/a (0.23 ) (0.23 ) - Net (loss)/income per common unit, basic n/a $ (0.40 ) $ (0.40 ) $ 0.79 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.17 ) $ (0.17 ) $ 0.79 Net (loss) per unit from discontinued operations n/a (0.23 ) (0.23 ) - Net (loss)/income per common unit, diluted n/a $ (0.40 ) $ (0.40 ) $ 0.79 Nine months ended September 30, 2019 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (42 ) $ (9,262 ) $ (808 ) $ 900 Net (loss) from discontinued operations (207 ) (45,463 ) (3,969 ) - Total interest in net (loss)/income $ (249 ) $ (54,725 ) $ (4,777 ) $ 900 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,143 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,143 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.71 ) $ (0.71 ) $ 0.60 Net (loss) per unit from discontinued operations n/a (3.47 ) (3.47 ) - Net (loss)/income per common unit, basic n/a $ (4.18 ) $ (4.18 ) $ 0.60 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.71 ) $ (0.71 ) 0.60 Net (loss) per unit from discontinued operations n/a (3.47 ) (3.47 ) - Net (loss)/income per common unit, diluted n/a $ (4.18 ) $ (4.18 ) 0.60 Nine months ended September 30, 2018 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (20 ) $ (4,355 ) $ (382 ) 1,788 Net (loss) from discontinued operations (31 ) (6,789 ) (597 ) - Total interest in net (loss)/income $ (51 ) $ (11,144 ) $ (979 ) 1,788 Denominator: Weighted average units used to compute basic EPU n/a 13,035 1,146 1,500 Weighted average units used to compute diluted EPU n/a 13,035 1,146 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.34 ) $ (0.34 ) $ 1.19 Net (loss) per unit from discontinued operations n/a (0.52 ) (0.52 ) - Net (loss)/income per common unit, basic n/a $ (0.86 ) $ (0.86 ) $ 1.19 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.34 ) $ (0.34 ) $ 1.19 Net (loss) per unit from discontinued operations n/a (0.52 ) (0.52 ) - Net (loss)/income per common unit, diluted n/a $ (0.86 ) $ (0.86 ) $ 1.19 Diluted EPU gives effect to all dilutive potential common units outstanding during the period using the treasury stock method. Diluted EPU excludes all dilutive potential units calculated under the treasury stock method if their effect is anti-dilutive. Since the Partnership incurred net losses for three and nine months ended September 30, 2019 and 2018, all potential dilutive units were excluded from the diluted EPU calculation for these periods because when an entity incurs a net loss in a period, potential dilutive units shall not be included in the computation of diluted EPU since their effect will always be anti-dilutive. There were 683,888 potential dilutive common units related to the Common Unit Warrants as discussed in Note 13 for the nine months ended September 30, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES Coal Sales Contracts and Contingencies Year Tons (in thousands) Number of customers 2019 Q4 762 13 2020 838 3 2021 120 1 Some of the contracts have sales price adjustment provisions, subject to certain limitations and adjustments, based on a variety of factors and indices. Purchase Commitments Purchased Coal Expenses Leases Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Lease expense $ 1,239 $ 1,105 $ 3,621 $ 2,334 Royalty expense $ 3,150 $ 2,564 $ 9,602 $ 8,022 Guarantees/Indemnifications and Financial Instruments with Off-Balance Sheet Risk Certain surety bonds for Sands Hill Mining LLC had not been transferred or replaced by the buyer of Sands Hill Mining LLC as was agreed to when the Partnership sold Sands Hill Mining LLC to the buyer in November 2017. On July 9, 2019, the Partnership entered into an agreement with a third party for the replacement of the Partnership’s existing surety bond obligations with respect to Sands Hill Mining LLC. The Partnership agreed to pay the third party $2.0 million to assume the Partnership’s surety bond obligations related to Sands Hill Mining LLC. At the time of closing, the third party delivered to the Partnership confirmation from its surety underwriter evidencing the release and removal of the Partnership, its affiliates and guarantors, from the surety bond obligations and all related obligations under the Partnership’s bonding agreements related to Sands Hill Mining LLC, which includes a release of all applicable collateral for the surety bond obligations. Further, such confirmation from the surety underwriter was specifically provided for their acceptance of the third party as a replacement obligor. |
Major Customers
Major Customers | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Major Customers | 16. MAJOR CUSTOMERS The Partnership had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: September 30, 2019 Receivable Balance December 31, 2018 Receivable Balance Nine months ended September 30, 2019 Sales Nine months ended September 30, 2018 Sales (in thousands) Javelin Global $ 2,261 $ 4,347 $ 36,442 $ 29,267 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 17. REVENUE The Partnership adopted ASC Topic 606 on January 1, 2018, using the modified retrospective method. The adoption of Topic 606 has no impact on revenue amounts recorded on the Partnership’s financial statements. The new disclosures required by ASC Topic 606, as applicable, are presented below. The majority of the Partnership’s revenues are generated under coal sales contracts. Coal sales accounted for approximately 99.0% of the Partnership’s total revenues for the three and nine months ended September 30, 2019 and 2018. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income, which accounted for approximately 1.0% of the Partnership’s total revenues for the three and nine months ended September 30, 2019 and 2018. The majority of the Partnership’s coal sales contracts have a single performance obligation (shipment or delivery of coal according to terms of the sales agreement) and as such, the Partnership is not required to allocate the contract’s transaction price to multiple performance obligations. All of the Partnership’s coal sales revenue is recognized when shipment or delivery to the customer has occurred, the title or risk of loss has passed in accordance with the terms of the coal sales agreement, prices are fixed or determinable and collectability is reasonably assured. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Partnership carefully reviews the facts and circumstances of each transaction and does not recognize revenue until the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. In the tables below, the Partnership has disaggregated its revenue by category for each reportable segment as required by ASC Topic 606. The following table disaggregates revenue by type for each reportable segment for the three months ended September 30, 2019: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 10,746 $ 6,201 $ 10,613 $ - $ 27,560 Met coal 14,261 - - - 14,261 Other revenue 50 368 1 26 445 Total $ 25,057 $ 6,569 $ 10,614 $ 26 $ 42,266 The following table disaggregates revenue by type for each reportable segment for the three months ended September 30, 2018: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 13,979 $ 5,229 $ 10,254 $ - $ 29,462 Met coal 29,875 - - - 29,875 Other revenue 36 602 - 62 700 Total $ 43,890 $ 5,831 $ 10,254 $ 62 $ 60,037 The following table disaggregates revenue by type for each reportable segment for the nine months ended September 30, 2019: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 33,884 $ 20,662 $ 27,745 $ - $ 82,291 Met coal 56,396 - - - 56,396 Other revenue 406 1,382 1 27 1,816 Total $ 90,686 $ 22,044 $ 27,746 $ 27 $ 140,503 The following table disaggregates revenue by type for each reportable segment for the nine months ended September 30, 2018: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 38,840 $ 12,821 $ 26,970 $ - $ 78,631 Met coal 64,004 - - - 64,004 Other revenue 154 1,576 10 165 1,905 Total $ 102,998 $ 14,397 $ 26,980 $ 165 $ 144,540 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. FAIR VALUE MEASUREMENTS The Partnership determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Partnership’s assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below: Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The book values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the Partnership’s Financing Agreement was determined based upon a market approach and approximates the carrying value at September 30, 2019. The fair value of the Partnership’s Financing Agreement is a Level 2 measurement. As of December 31, 2018, the Partnership had a recurring fair value measurement relating to its investment in Mammoth Inc. As discussed in Note 5, the Partnership sold the balance of its Mammoth Inc. shares (104,100 shares) during the first quarter of 2019. The Partnership’s shares of Mammoth Inc. were classified as an investment on the Partnership’s unaudited condensed consolidated statements of financial position as of December 31, 2018. Based on the availability of a quoted price, the recurring fair value measurement of the Mammoth Inc. shares was a Level 1 measurement. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 19. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for interest were $3.3 million and $4.9 million for the nine months ended September 30, 2019 and 2018, respectively. The unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2019 and 2018 excludes approximately $3.1 million and $1.1 million, respectively, of property, plant and equipment additions which are recorded in Accounts payable. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 20. SEGMENT INFORMATION The Partnership primarily produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah. The Partnership sells primarily to electric utilities in the United States. As of September 30, 2019, the Partnership had three reportable business segments: Central Appalachia, Northern Appalachia and Rhino Western. Additionally, the Partnership has an Other category that includes its ancillary businesses. The Partnership has not provided disclosure of total expenditures by segment for long-lived assets, as the Partnership does not maintain discrete financial information concerning segment expenditures for long lived assets, and accordingly such information is not provided to the Partnership’s chief operating decision maker. The information provided in the following tables represents the primary measures used to assess segment performance by the Partnership’s chief operating decision maker. Reportable segment results of operations for the three months ended September 30, 2019 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 25,057 $ 6,569 $ 10,614 $ 26 $ 42,266 DD&A 1,992 438 1,062 33 3,525 Interest expense - - - 1,872 1,872 Net (loss)/income $ (1,226 ) $ (2,157 ) $ 1,501 $ (6,462 ) $ (8,344 ) Reportable segment results of operations for the three months ended September 30, 2018 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 43,890 $ 5,831 $ 10,254 $ 62 $ 60,037 DD&A 2,200 385 978 92 3,655 Interest expense - - - 2,831 2,831 Net income/(loss) $ 3,619 $ (881 ) $ 56 $ (4,070 ) $ (1,276 ) Reportable segment results of operations for the nine months ended September 30, 2019 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 90,686 $ 22,044 $ 27,746 $ 27 $ 140,503 DD&A 5,756 1,280 3,265 210 10,511 Interest expense - - - 5,308 5,308 Net income/(loss) $ 6,517 $ (3,971 ) $ 2,494 $ (14,252 ) $ (9,212 ) Reportable segment results of operations for the nine months ended September 30, 2018 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 102,998 $ 14,397 $ 26,980 $ 165 $ 144,540 DD&A 6,659 825 3,080 277 10,841 Interest expense 1 - - 6,628 6,629 Net income/(loss) $ 5,546 $ (3,473 ) $ 956 $ (5,998 ) $ (2,969 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and General (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition. Revenue from Contracts with Customers (Topic 606) Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Partnership carefully reviews the facts and circumstances of each transaction and does not recognize revenue until the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. |
Debt Issuance Costs | Debt Issuance Costs. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards . Leases (Topic 842) In July 2017, the FASB issued ASU 2017-11, “Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480), I. Derivatives and Hedging (Topic 815): Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.” |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed of Acquisition | The following table summarizes the assets acquired and liabilities assumed as of the acquisition date: (in thousands) Property, plant and equipment $ 3,853 Land 378 Asset retirement obligation (2,596 ) Net assets acquired $ 1,635 Initial cash consideration $ 850 Mineral cure payments 431 Transaction costs 104 Cash consideration 1,385 Royalty payable 250 Total consideration $ 1,635 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal of Discontinued Operations | Major assets and liabilities of discontinued operations for Pennyrile Energy LLC as of September 30, 2019 and December 31, 2018 are summarized as follows: September 30, 2019 December 31, 2018 (in thousands) Carrying amount of major classes of assets included as part Cash and cash equivalents $ - $ 1 Accounts receivable 1,428 2,645 Accounts receivable-other 174 - Inventories - 455 Advance royalties - 540 Prepaid expenses and other - 107 Total current assets of the disposal group classified as held for sale in the statement of financial position $ 1,602 $ 3,748 Property and equipment (net) $ 6,517 $ 54,338 Advance royalties, net of current portion - 1,438 Other non-current assets - 443 Total non-current assets of the disposal group classified as held for sale in the statement of financial position $ 6,517 $ 56,219 Carrying amount of major classes of liabilities included as part Accounts payable $ 3,389 $ 3,772 Accrued expenses and other 1,332 1,457 Asset retirement obligations, current portion 2,200 - Total current liabilities of the disposal group classified as held for sale in the statement of financial position $ 6,921 $ 5,229 Asset retirement obligations, net of current portion $ - $ 968 Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 968 Major components of net loss from discontinued operations for Pennyrile Energy LLC for three months ended September 30, 2019 and 2018 are summarized as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in thousands) Major line items constituting loss from discontinued operations for the Pennyrile Energy LLC disposal: Coal sales $ 8,920 $ 12,529 $ 35,009 $ 37,748 Total revenues 8,920 12,529 35,009 37,748 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) 11,797 13,725 39,928 39,108 Depreciation, depletion and amortization 1,778 1,974 5,959 5,892 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) 52 80 130 161 Asset impairment and related charges 38,633 - 38,633 - (Gain) on sale/disposal of assets, net - 4 (2 ) 4 Total costs, expenses and other 52,260 15,783 84,648 45,165 (Loss) from discontinued operations before income taxes for the Pennyrile Energy LLC disposal (43,340 ) (3,254 ) (49,639 ) (7,417 ) Income taxes - - - - Net (loss) from discontinued operations $ (43,340 ) $ (3,254 ) $ (49,639 ) $ (7,417 ) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 (in thousands) Other prepaid expenses $ 1,015 $ 865 Prepaid insurance 1,869 1,397 Prepaid leases 82 92 Supply inventory 306 306 Total $ 3,272 $ 2,660 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment by Major Classification | Property, plant and equipment, including coal properties and mine development and construction costs, as of September 30, 2019 and December 31, 2018 are summarized by major classification as follows: September 30, December 31, Useful Lives 2019 2018 (in thousands) Land and land improvements $ 10,082 $ 13,181 Mining and other equipment and related facilities 2 - 20 Years 256,582 253,489 Mine development costs 1 - 15 Years 41,560 39,967 Coal properties 1 - 15 Years 58,358 58,424 Construction work in process 10,058 2,123 Total 376,640 367,184 Less accumulated depreciation, depletion and amortization (254,754 ) (247,662 ) Net $ 121,886 $ 119,522 |
Schedule of Depreciation, Depletion and Amortization | Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs and amortization expense for asset retirement costs for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 2,525 $ 2,622 $ 7,526 $ 7,740 Depletion expense for coal properties 419 418 1,247 1,264 Amortization expense for mine development costs 517 515 1,543 1,506 Amortization expense for asset retirement costs 64 100 195 331 Total $ 3,525 $ 3,655 $ 10,511 $ 10,841 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental information related to leases was as follows: September 30, 2019 (in thousands) Operating leases Operating lease right-of use assets $ 11,926 Operating lease liabilities-current $ 3,260 Operating lease liabilities-long-term 8,300 Total operating lease liabilities $ 11,560 Finance leases Property. Plant and Equipment, gross $ 10 Accumulated depreciation (4 ) Total Property, Plant and Equipment, net $ 6 Finance leases - current portion $ 4 Finance leases - noncurrent portion 3 Total finance lease obligation $ 7 |
Schedule of Weighted Average Discount Rates and Lease Terms | Weighted Average Discount Rates and Lease Terms September 30, 2019 Weighted Average Discount Rate Operating leases 7.0 % Finance leases 7.0 % Weighted Average Lease Term Operating leases 5.01 years Finance leases 1.53 years |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Nine months ended September 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,924 Operating cash flows for finance leases $ - Financing cash flows for finance leases $ 3 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 14,267 Finance leases $ 10 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: Year ending December 31, Operating leases Finance leases (in thousands) 2019 (excluding the nine months ended September 30, 2019) $ 982 $ 2 2020 3,730 5 2021 2,908 - 2022 1,895 - 2023 929 - 2024 908 Thereafter 2,361 - Total lease payments 13,713 7 Less: imputed interest (2,153 ) - Total $ 11,560 $ 7 |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Three months ended September 30, 2019 Nine months ended September 30, 2019 (in thousands) Operating lease cost $ 981 $ 2,943 Finance lease cost: Amortization of right-of-use assets $ 1 $ 3 Interest on lease liabilities - - Total finance lease cost $ 1 $ 3 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Non-Current Assets | Other non-current assets as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Deposits and other $ 704 $ 859 Due (to) Rhino GP (47 ) (84 ) Non-current receivable 24,192 24,192 Total $ 24,849 $ 24,967 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Payroll, bonus and vacation expense $ 2,041 $ 1,529 Non-income taxes 2,757 1,794 Royalty expenses 2,266 1,368 Accrued interest 85 35 Health claims 905 868 Workers’ compensation & pneumoconiosis 1,900 1,900 Other 1,879 1,156 Total $ 11,833 $ 8,650 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (in thousands) Note payable -Financing Agreement $ 37,923 $ 29,048 Note payable-other debt 1,070 522 Finance lease obligation 7 - Net unamortized debt issuance costs (5,581 ) (4,095 ) Net unamortized original issue discount (527 ) (843 ) Total 32,892 24,632 Less current portion (4,445 ) (2,174 ) Long-term debt $ 28,447 $ 22,458 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The changes in asset retirement obligations for the nine months ended September 30, 2019 and the year ended December 31, 2018 are as follows: September 30, 2019 December 31, 2018 (in thousands) Balance at beginning of period (including current portion) $ 17,581 $ 18,662 Accretion expense 957 1,269 Adjustments to the liability from annual recosting and other - (1,083 ) Jewell Valley LLC acquisition 2,596 - Reclassification to held for sale (38 ) (968 ) Liabilities settled (66 ) (299 ) Balance at end of period 21,030 17,581 Less current portion of asset retirement obligation (465 ) (465 ) Long-term portion of asset retirement obligation $ 20,565 $ 17,116 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Expense Under Defined Contribution Savings Plan | The expense under these plans for the three and nine months ended September 30, 2019 and 2018 is included in Cost of operations and Selling, general and administrative expense in the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income and was as follows: Three Months Ended Nine months ended 2019 2018 2019 2018 (in thousands) 401(k) plan expense $ 364 $ 323 $ 1,041 $ 903 |
Earnings Per Unit ('EPU') (Tabl
Earnings Per Unit ('EPU') (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Unit | The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the periods ended September 30, 2019 and 2018: Three months ended September 30, 2019 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (36 ) $ (7,917 ) $ (691 ) $ 300 Net (loss) from discontinued operations (181 ) (39,695 ) (3,464 ) - Total interest in net (loss)/income $ (217 ) $ (47,612 ) $ (4,155 ) $ 300 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,143 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,143 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.60 ) $ (0.60 ) $ 0.20 Net (loss) per unit from discontinued operations n/a (3.03 ) (3.03 ) - Net (loss)/income per common unit, basic n/a $ (3.63 ) $ (3.63 ) $ 0.20 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.60 ) $ (0.60 ) 0.20 Net (loss) per unit from discontinued operations n/a (3.03 ) (3.03 ) - Net (loss)/income per common unit, diluted n/a $ (3.63 ) $ (3.63 ) 0.20 Three months ended September 30, 2018 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (10 ) $ (2,248 ) $ (197 ) $ 1,179 Net (loss) from discontinued operations (14 ) (2,980 ) (260 ) - Total interest in net (loss)/income $ (24 ) $ (5,228 ) $ (457 ) 1,179 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,146 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,146 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.17 ) $ (0.17 ) $ 0.79 Net (loss) per unit from discontinued operations n/a (0.23 ) (0.23 ) - Net (loss)/income per common unit, basic n/a $ (0.40 ) $ (0.40 ) $ 0.79 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.17 ) $ (0.17 ) $ 0.79 Net (loss) per unit from discontinued operations n/a (0.23 ) (0.23 ) - Net (loss)/income per common unit, diluted n/a $ (0.40 ) $ (0.40 ) $ 0.79 Nine months ended September 30, 2019 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (42 ) $ (9,262 ) $ (808 ) $ 900 Net (loss) from discontinued operations (207 ) (45,463 ) (3,969 ) - Total interest in net (loss)/income $ (249 ) $ (54,725 ) $ (4,777 ) $ 900 Denominator: Weighted average units used to compute basic EPU n/a 13,098 1,143 1,500 Weighted average units used to compute diluted EPU n/a 13,098 1,143 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.71 ) $ (0.71 ) $ 0.60 Net (loss) per unit from discontinued operations n/a (3.47 ) (3.47 ) - Net (loss)/income per common unit, basic n/a $ (4.18 ) $ (4.18 ) $ 0.60 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.71 ) $ (0.71 ) 0.60 Net (loss) per unit from discontinued operations n/a (3.47 ) (3.47 ) - Net (loss)/income per common unit, diluted n/a $ (4.18 ) $ (4.18 ) 0.60 Nine months ended September 30, 2018 General Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/income: Net (loss)/income from continuing operations $ (20 ) $ (4,355 ) $ (382 ) 1,788 Net (loss) from discontinued operations (31 ) (6,789 ) (597 ) - Total interest in net (loss)/income $ (51 ) $ (11,144 ) $ (979 ) 1,788 Denominator: Weighted average units used to compute basic EPU n/a 13,035 1,146 1,500 Weighted average units used to compute diluted EPU n/a 13,035 1,146 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.34 ) $ (0.34 ) $ 1.19 Net (loss) per unit from discontinued operations n/a (0.52 ) (0.52 ) - Net (loss)/income per common unit, basic n/a $ (0.86 ) $ (0.86 ) $ 1.19 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.34 ) $ (0.34 ) $ 1.19 Net (loss) per unit from discontinued operations n/a (0.52 ) (0.52 ) - Net (loss)/income per common unit, diluted n/a $ (0.86 ) $ (0.86 ) $ 1.19 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Delivery Commitments | As of September 30, 2019, the Partnership had commitments under sales contracts to deliver annually scheduled base quantities of coal as follows: Year Tons (in thousands) Number of customers 2019 Q4 762 13 2020 838 3 2021 120 1 |
Schedule of Lease and Royalty Expense | Lease and royalty expense for the three and nine months ended September 30, 2019 and 2018 are included in Cost of operations in the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income and was as follows: Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (in thousands) Lease expense $ 1,239 $ 1,105 $ 3,621 $ 2,334 Royalty expense $ 3,150 $ 2,564 $ 9,602 $ 8,022 |
Major Customers (Tables)
Major Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Summary of Major Customers | The Partnership had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: September 30, 2019 Receivable Balance December 31, 2018 Receivable Balance Nine months ended September 30, 2019 Sales Nine months ended September 30, 2018 Sales (in thousands) Javelin Global $ 2,261 $ 4,347 $ 36,442 $ 29,267 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by type for each reportable segment for the three months ended September 30, 2019: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 10,746 $ 6,201 $ 10,613 $ - $ 27,560 Met coal 14,261 - - - 14,261 Other revenue 50 368 1 26 445 Total $ 25,057 $ 6,569 $ 10,614 $ 26 $ 42,266 The following table disaggregates revenue by type for each reportable segment for the three months ended September 30, 2018: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 13,979 $ 5,229 $ 10,254 $ - $ 29,462 Met coal 29,875 - - - 29,875 Other revenue 36 602 - 62 700 Total $ 43,890 $ 5,831 $ 10,254 $ 62 $ 60,037 The following table disaggregates revenue by type for each reportable segment for the nine months ended September 30, 2019: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 33,884 $ 20,662 $ 27,745 $ - $ 82,291 Met coal 56,396 - - - 56,396 Other revenue 406 1,382 1 27 1,816 Total $ 90,686 $ 22,044 $ 27,746 $ 27 $ 140,503 The following table disaggregates revenue by type for each reportable segment for the nine months ended September 30, 2018: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Coal sales Steam coal $ 38,840 $ 12,821 $ 26,970 $ - $ 78,631 Met coal 64,004 - - - 64,004 Other revenue 154 1,576 10 165 1,905 Total $ 102,998 $ 14,397 $ 26,980 $ 165 $ 144,540 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results of Operations | Reportable segment results of operations for the three months ended September 30, 2019 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 25,057 $ 6,569 $ 10,614 $ 26 $ 42,266 DD&A 1,992 438 1,062 33 3,525 Interest expense - - - 1,872 1,872 Net (loss)/income $ (1,226 ) $ (2,157 ) $ 1,501 $ (6,462 ) $ (8,344 ) Reportable segment results of operations for the three months ended September 30, 2018 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 43,890 $ 5,831 $ 10,254 $ 62 $ 60,037 DD&A 2,200 385 978 92 3,655 Interest expense - - - 2,831 2,831 Net income/(loss) $ 3,619 $ (881 ) $ 56 $ (4,070 ) $ (1,276 ) Reportable segment results of operations for the nine months ended September 30, 2019 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 90,686 $ 22,044 $ 27,746 $ 27 $ 140,503 DD&A 5,756 1,280 3,265 210 10,511 Interest expense - - - 5,308 5,308 Net income/(loss) $ 6,517 $ (3,971 ) $ 2,494 $ (14,252 ) $ (9,212 ) Reportable segment results of operations for the nine months ended September 30, 2018 are as follows: Central Appalachia Northern Appalachia Rhino Western Other Total Consolidated (in thousands) Total revenues $ 102,998 $ 14,397 $ 26,980 $ 165 $ 144,540 DD&A 6,659 825 3,080 277 10,841 Interest expense 1 - - 6,628 6,629 Net income/(loss) $ 5,546 $ (3,473 ) $ 956 $ (5,998 ) $ (2,969 ) |
Basis of Presentation and Org_2
Basis of Presentation and Organization (Details Narrative) | Mar. 31, 2016 |
Royal Energy Resources, Inc [Member] | |
Ownership percentage | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and General (Details Narrative) | Sep. 30, 2019 | Sep. 30, 2018 |
Accounting Policies [Abstract] | ||
Debt effective interest rate | 22.12% | 24.18% |
Acquisition (Details Narrative)
Acquisition (Details Narrative) $ in Thousands | Aug. 14, 2019USD ($) |
Cash consideration | $ 850 |
Royalty payment | 250 |
Blackjewel Holdings L.L.C. [Member] | |
Cash consideration | 850 |
Royalty payment | 250 |
Blackjewel Holdings L.L.C. [Member] | Assignment Agreement [Member] | |
Transaction costs | $ 103,577 |
Acquisition - Schedule of Asset
Acquisition - Schedule of Assets Acquired and Liabilities Assumed of Acquisition (Details) $ in Thousands | Aug. 14, 2019USD ($) |
Business Combinations [Abstract] | |
Property, plant and equipment | $ 3,853 |
Land | 378 |
Asset retirement obligation | (2,596) |
Net assets acquired | 1,635 |
Initial cash consideration | 850 |
Mineral cure payments | 431 |
Transaction costs | 104 |
Cash consideration | 1,385 |
Royalty payable | 250 |
Total consideration | $ 1,635 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) $ in Thousands | Sep. 06, 2019 | Aug. 14, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Payments from business gross | $ 850 | |||||
Pennyrile Energy LLC [Member] | ||||||
Asset impairment loss | $ 38,600 | $ 38,600 | $ 38,600 | $ 38,600 | ||
Capital expenditures | $ 400 | $ 1,100 | $ 1,400 | $ 3,000 | ||
Pennyrile Energy LLC [Member] | Asset Purchase Agreement [Member] | ||||||
Payments from business gross | $ 3,700 | |||||
Pennyrile Energy LLC [Member] | Coal Supply Asset Purchase Agreement [Member] | ||||||
Payments from business gross | $ 7,300 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Disposal of Discontinued Operations (Details) - Pennyrile Energy LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 1 | ||||
Accounts receivable | 1,428 | 1,428 | 2,645 | ||
Accounts receivable-other | 174 | 174 | |||
Inventories | 455 | ||||
Advance royalties | 540 | ||||
Prepaid expenses and other | 107 | ||||
Total current assets of the disposal group classified as held for sale in the statement of financial position | 1,602 | 1,602 | 3,748 | ||
Property and equipment (net) | 6,517 | 6,517 | 54,338 | ||
Advance royalties, net of current portion | 1,438 | ||||
Other non-current assets | 443 | ||||
Total non-current assets of the disposal group classified as held for sale in the statement of financial position | 6,517 | 6,517 | 56,219 | ||
Accounts payable | 3,389 | 3,389 | 3,772 | ||
Accrued expenses and other | 1,332 | 1,332 | 1,457 | ||
Asset retirement obligations, current portion | 2,200 | 2,200 | |||
Total current liabilities of the disposal group classified as held for sale in the statement of financial position | 6,921 | 6,921 | 5,229 | ||
Asset retirement obligations, net of current portion | 968 | ||||
Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position | $ 968 | ||||
Total revenues | 8,920 | $ 12,529 | 35,009 | $ 37,748 | |
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 11,797 | 13,725 | 39,928 | 39,108 | |
Depreciation, depletion and amortization | 1,778 | 1,974 | 5,959 | 5,892 | |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 52 | 80 | 130 | 161 | |
Asset impairment and related charges | 38,633 | 38,633 | |||
(Gain) on sale/disposal of assets, net | 4 | (2) | 4 | ||
Total costs, expenses and other | 52,260 | 15,783 | 84,648 | 45,165 | |
(Loss) from discontinued operations before income taxes for the Pennyrile Energy LLC disposal | (43,340) | (3,254) | (49,639) | (7,417) | |
Income taxes | |||||
Net (loss) from discontinued operations | (43,340) | (3,254) | (49,639) | (7,417) | |
Coal Sales [Member] | |||||
Total revenues | $ 8,920 | $ 12,529 | $ 35,009 | $ 37,748 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details Narrative) - USD ($) $ in Thousands | Jul. 03, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2017 | Jun. 28, 2019 | Dec. 31, 2018 |
Receivable, other | $ 2,960 | |||||
Gain on partnership settlement agreement | $ 6,900 | |||||
Number of shares sold, shares | 104,100 | |||||
Number of shares sold for net consideration | $ 2,300 | |||||
Mammoth Energy Services, Inc. [Member] | ||||||
Number of shares acquired | 568,794 | |||||
Shares owned by partnership | 104,100 | |||||
Settlement Agreement [Member] | Third Party [Member] | ||||||
Due from third party | $ 2,800 | $ 7,000 | ||||
Proceeds from third party | $ 4,200 | |||||
Debt instrument maturity date | Feb. 29, 2020 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Other prepaid expenses | $ 1,015 | $ 865 |
Prepaid insurance | 1,869 | 1,397 |
Prepaid leases | 82 | 92 |
Supply inventory | 306 | 306 |
Total Prepaid expenses and other assets | $ 3,272 | $ 2,660 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment by Major Classification (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 376,640 | $ 367,184 |
Less accumulated depreciation, depletion and amortization | (254,754) | (247,662) |
Net | 121,886 | 119,522 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 256,582 | 253,489 |
Mining and Other Equipment and Related Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 2 years | |
Mining and Other Equipment and Related Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 20 years | |
Mine Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 41,560 | 39,967 |
Mine Development Costs [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 1 year | |
Mine Development Costs [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 15 years | |
Coal Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 58,358 | 58,424 |
Coal Properties [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 1 year | |
Coal Properties [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Lives | 15 years | |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 10,082 | 13,181 |
Construction Work in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 10,058 | $ 2,123 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Depreciation, Depletion and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | $ 3,525 | $ 3,655 | $ 10,511 | $ 10,841 |
Mining and Other Equipment and Related Facilities [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 2,525 | 2,622 | 7,526 | 7,740 |
Coal Properties [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 419 | 418 | 1,247 | 1,264 |
Mine Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 517 | 515 | 1,543 | 1,506 |
Asset Retirement Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | $ 64 | $ 100 | $ 195 | $ 331 |
Leases (Details Narrative)
Leases (Details Narrative) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases term description | The leases have remaining lease terms of 1 year to 9 years, some of which include options to extend the leases for up to 15 years. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of use assets | $ 11,926 | |
Operating lease liabilities-current | 3,260 | |
Operating lease liabilities-long-term | 8,300 | |
Total operating lease liabilities | 11,560 | |
Finance leases: Property. Plant and Equipment, gross | 10 | |
Finance leases: Accumulated depreciation | (4) | |
Finance leases: Total Property, Plant and Equipment, net | 6 | |
Finance leases - current portion | 4 | |
Finance leases - noncurrent portion | 3 | |
Total finance lease obligation | $ 7 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Discount Rates and Lease Terms (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted Average Discount Rate: Operating leases | 7.00% |
Weighted Average Discount Rate: Finance leases | 7.00% |
Weighted Average Lease Term: Operating leases term | 5 years 4 days |
Weighted Average Lease Term: Finance leases term | 1 year 6 months 10 days |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 2,924 | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases | |||
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases | 3 | ||
Right-of-use assets obtained in exchange for lease obligations: Operating liabilities | 14,267 | ||
Right-of-use assets obtained in exchange for lease obligations: Finance liabilities | $ 10 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating leases: 2019 (excluding the nine months ended September 30, 2019) | $ 982 | |
Operating leases: 2020 | 3,730 | |
Operating leases: 2021 | 2,908 | |
Operating leases: 2022 | 1,895 | |
Operating leases: 2023 | 929 | |
Operating leases: 2024 | 908 | |
Operating leases: Thereafter | 2,361 | |
Operating leases: Total lease payments | 13,713 | |
Operating Leases Less: Imputed interest | (2,153) | |
Operating leases: Total | 11,560 | |
Finance Leases: 2019 (excluding the nine months ended September 30, 2019) | 2 | |
Finance Leases: 2020 | 5 | |
Finance Leases: 2021 | ||
Finance Leases: 2022 | ||
Finance Leases: 2023 | ||
Finance Leases: Thereafter | ||
Finance Leases: Total lease payments | 7 | |
Finance Leases Less: Imputed interest | ||
Finance Leases: Total | $ 7 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease Cost | $ 981 | $ 2,943 |
Finance lease cost: Amortization of right-of-use assets | 1 | 3 |
Finance lease cost: Interest on lease liabilities | ||
Total finance lease cost | $ 1 | $ 3 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Non-current receivable | $ 24,192 | $ 24,192 |
Workers' compensation benefits liability, noncurrent | $ 24,200 | $ 24,200 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deposits and other | $ 704 | $ 859 |
Due (to) Rhino GP | (47) | (84) |
Non-current receivable | 24,192 | 24,192 |
Total | $ 24,849 | $ 24,967 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Payroll, bonus and vacation expense | $ 2,041 | $ 1,529 |
Non-income taxes | 2,757 | 1,794 |
Royalty expenses | 2,266 | 1,368 |
Accrued interest | 85 | 35 |
Health claims | 905 | 868 |
Workers' compensation & pneumoconiosis | 1,900 | 1,900 |
Other | 1,879 | 1,156 |
Total | $ 11,833 | $ 8,650 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | Sep. 06, 2019 | May 13, 2019 | May 08, 2019 | Feb. 14, 2019 | Oct. 26, 2018 | Apr. 17, 2018 | Dec. 27, 2017 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Aug. 16, 2019 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||||||||||||
Accrued preferred distributions | $ 900 | $ 3,210 | |||||||||||
Proceeds from sale of real property | $ 1,756 | $ 4,802 | |||||||||||
Financing Agreement [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt due date | Dec. 27, 2020 | ||||||||||||
Debt instruments interest terms | Loans made pursuant to the Financing Agreement are, at the Operating Company's option, either "Reference Rate Loans" or "LIBOR Rate Loans." Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the "bank prime loan" rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if the Operating Company has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at the Operating Company's option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the "PIK Option"). | ||||||||||||
Loan payable on quarterly basis | $ 375 | ||||||||||||
Debt instrument description | Borrowers must make certain prepayments over the term of any loans outstanding, including: (i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to (i) certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by the Operating Company, and (iii) audit and collateral monitoring fees and origination and exit fees. | ||||||||||||
Debt covenant description | Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00 | ||||||||||||
Proceeds from sale of real property | $ 379 | ||||||||||||
One time cash distribution not exceed amount | $ 3,200 | ||||||||||||
Amendment fee amount | $ 600 | ||||||||||||
Exit fee percentage | 1.00% | ||||||||||||
Exit fee percentage, description | The original exit fee of 3% was included in the Financing Agreement at the execution date and the increase of the total exit fee to 6% was included as part of the amendment dated February 13, 2019 discussed above and this Third Amendment. | ||||||||||||
Partnership borrowed amount | $ 27,900 | ||||||||||||
Short term variable interest rate | 12.13% | ||||||||||||
Financing Agreement [Member] | LIBOR Plus [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Short term variable interest rate | 10.00% | ||||||||||||
Financing Agreement [Member] | Minimum [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Exit fee percentage | 3.00% | ||||||||||||
Financing Agreement [Member] | Maximum [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Exit fee percentage | 6.00% | ||||||||||||
Financing Agreement [Member] | Lenders [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt due date | Dec. 27, 2022 | ||||||||||||
Repayments of loan | $ 5,000 | ||||||||||||
Loan payable | $ 5,000 | $ 5,000 | |||||||||||
Financing Agreement [Member] | Lenders [Member] | Consent Fee [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt instrument fee amount | 1,000 | ||||||||||||
Financing Agreement [Member] | Lenders [Member] | Amendment Fee [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt instrument fee amount | $ 825 | ||||||||||||
Financing Agreement [Member] | Lenders [Member] | Minimum [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Exit fee percentage | 1.00% | ||||||||||||
Financing Agreement [Member] | Lenders [Member] | Maximum [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Exit fee percentage | 7.00% | ||||||||||||
Financing Agreement [Member] | Series A Preferred Units [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Accrued preferred distributions | $ 6,000 | ||||||||||||
Financing Agreement [Member] | Effective Date Term Loan Commitment [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt instrument principal amount | $ 40,000 | ||||||||||||
Financing Agreement [Member] | Delayed Draw Term Loan Commitment [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt instrument principal amount | $ 40,000 | ||||||||||||
Debt instrument utilized amount | 15,000 | ||||||||||||
Debt instrument additional commitment remaining | 25,000 | ||||||||||||
Financing Agreement [Member] | Cortland Capital Market Services LLC [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt instrument principal amount | $ 80,000 | ||||||||||||
Debt due date | Dec. 27, 2020 | ||||||||||||
Financing Agreement [Member] | Mammoth Inc. [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Proceed from sale of shares | $ 5,000 | ||||||||||||
Percentage of additional shares sold, description | Additionally, the amendments provided that the Partnership could sell additional shares of Mammoth Inc. stock and retain 50% of the proceeds with the other 50% used to reduce debt. | ||||||||||||
Proceeds from sale of stock reduced of outstanding debt | $ 3,400 | ||||||||||||
Financing Agreement [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Partnership borrowed amount | $ 5,000 | ||||||||||||
Short term variable interest rate | 12.17% | ||||||||||||
Financing Agreement [Member] | LIBOR Plus [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Short term variable interest rate | 10.00% | ||||||||||||
Financing Agreement [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Partnership borrowed amount | $ 5,000 | ||||||||||||
Short term variable interest rate | 12.06% | ||||||||||||
Financing Agreement [Member] | LIBOR Plus [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Short term variable interest rate | 10.00% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Note payable -Financing Agreement | $ 37,923 | $ 29,048 |
Note payable-other debt | 1,070 | 522 |
Finance lease obligation | 7 | |
Net unamortized debt issuance costs | (5,581) | (4,095) |
Net unamortized original issue discount | (527) | (843) |
Total | 32,892 | 24,632 |
Less current portion | (4,445) | (2,174) |
Long-term debt | $ 28,447 | $ 22,458 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Balance at beginning of period (including current portion) | $ 17,581 | $ 18,662 | $ 18,662 |
Accretion expense | 957 | $ 954 | 1,269 |
Adjustments to the liability from annual recosting and other | (1,083) | ||
Jewell Valley LLC acquisition | 2,596 | ||
Reclassification to held for sale | (38) | (968) | |
Liabilities settled | (66) | (299) | |
Balance at end of period | 21,030 | 17,581 | |
Less current portion of asset retirement obligation | (465) | (465) | |
Long-term portion of asset retirement obligation | $ 20,565 | $ 17,116 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Expense Under Defined Contribution Savings Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
401(k) plan expense | $ 364 | $ 323 | $ 1,041 | $ 903 |
Partners' Capital (Details Narr
Partners' Capital (Details Narrative) $ / shares in Units, $ in Thousands | Sep. 01, 2017USD ($)Number$ / sharesshares | Dec. 30, 2016USD ($)Number$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / shares |
Fourth Quarter of 2018 [Member] | Mammoth Inc. [Member] | ||||||
Reclassification from Other Comprehensive Income | $ 4,200 | |||||
Series A Preferred Units [Member] | ||||||
Partnership paid for distributions earned | 900 | |||||
Series A Preferred Units [Member] | First Quarter of 2019 [Member] | ||||||
Partnership paid for distributions earned | $ 3,200 | |||||
Series A Preferred Units [Member] | First Quarter of 2018 [Member] | ||||||
Partnership paid for distributions earned | $ 6,000 | |||||
Series A Preferred Units [Member] | Minimum [Member] | ||||||
Debt conversion price per share | $ / shares | $ 2 | |||||
Series A Preferred Units [Member] | Maximum [Member] | ||||||
Debt conversion price per share | $ / shares | $ 10 | |||||
Royal Common Stock [Member] | ||||||
Weighted average closing price, conversion percent | 75.00% | |||||
Weighted average closing price, conversion trading days | Number | 90 | |||||
Debt conversion price per share | $ / shares | $ 4.51 | |||||
Conversion of debt | $ 4,100 | |||||
Common stock issued for conversion | shares | 914,797 | |||||
Royal Common Stock [Member] | Minimum [Member] | ||||||
Debt conversion price per share | $ / shares | $ 3.50 | |||||
Royal Common Stock [Member] | Maximum [Member] | ||||||
Debt conversion price per share | $ / shares | $ 7.50 | |||||
Fourth Amended and Restated Agreement [Member] | Series A Preferred Units [Member] | ||||||
Units of partnership interest, description | (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. "CAM Mining free cash flow" is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnership's Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnership's Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of coal tons sold by the Partnership from its Central Appalachia business segment. | |||||
Indebtedness | $ 50,000 | |||||
Unpaid distribution | $ / shares | $ 10 | |||||
Weighted average closing price, conversion percent | 75.00% | |||||
Weighted average closing price, conversion trading days | Number | 90 | |||||
Common Unit Warrants [Member] | Warrant Agreement [Member] | ||||||
Number of warrant issuance shares | shares | 683,888 | |||||
Warrant exercise price per share | $ / shares | $ 1.95 | |||||
Warrant expiration term | 5 years | |||||
Common Unit Warrants [Member] | Financing Agreement [Member] | ||||||
Proceeds from warrants | $ 40,000 | |||||
Fair value of warrants | $ 1,300 | |||||
Partnership's Common Units [Member] | ||||||
Partnership accumulated arrearages | $ 848,700 | $ 848,700 | ||||
Partnership's Common Units [Member] | Minimum [Member] | ||||||
Unpaid distribution | $ / shares | $ 4.45 |
Earnings Per Unit ('EPU') (Deta
Earnings Per Unit ('EPU') (Details Narrative) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Unit [Abstract] | ||
Potential antidilutive common units warrants | 683,888 | 683,888 |
Earnings Per Unit ('EPU') - Sch
Earnings Per Unit ('EPU') - Schedule of Calculation of Numerator and Denominator in Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Unit [Line Items] | ||||||||
Net (loss)/income from continuing operations | $ (8,344) | $ (1,276) | $ (9,212) | $ (2,969) | ||||
Net (loss) from discontinued operations | (43,340) | (3,254) | (49,639) | (7,417) | ||||
Total interest in net (loss)/income | (51,684) | $ 112 | $ (7,279) | (4,530) | $ (3,035) | $ (2,821) | (58,851) | (10,386) |
General Partner's [Member] | ||||||||
Earnings Per Unit [Line Items] | ||||||||
Net (loss)/income from continuing operations | (36) | (10) | (42) | (20) | ||||
Net (loss) from discontinued operations | (181) | (14) | (207) | (31) | ||||
Total interest in net (loss)/income | (217) | (24) | (249) | (51) | ||||
Common Unitholders' [Member] | ||||||||
Earnings Per Unit [Line Items] | ||||||||
Net (loss)/income from continuing operations | (7,917) | (2,248) | (9,262) | (4,355) | ||||
Net (loss) from discontinued operations | (39,695) | (2,980) | (45,463) | (6,789) | ||||
Total interest in net (loss)/income | $ (47,612) | $ (5,228) | $ (54,725) | $ (11,144) | ||||
Denominator: Weighted average units used to compute basic EPU | 13,098,000 | 13,098,000 | 13,098,000 | 13,035,000 | ||||
Denominator: Weighted average units used to compute diluted EPU | 13,098,000 | 13,098,000 | 13,098,000 | 13,035,000 | ||||
Net (loss)/income per unit from continuing operations | $ (0.60) | $ (0.17) | $ (0.71) | $ (0.34) | ||||
Net (loss) per unit from discontinued operations | (3.03) | (0.23) | (3.47) | (0.52) | ||||
Net (loss)/income per limited partner unit, basic | (3.63) | (0.40) | (4.18) | (0.86) | ||||
Net (loss)/income per unit from continuing operations | (0.60) | (0.17) | (0.71) | (0.34) | ||||
Net (loss) per unit from discontinued operations | (3.03) | (0.23) | (3.47) | (0.52) | ||||
Net (loss)/income per common unit, diluted | $ (3.63) | $ (0.40) | $ (4.18) | $ (0.86) | ||||
Subordinated Unitholders' [Member] | ||||||||
Earnings Per Unit [Line Items] | ||||||||
Net (loss)/income from continuing operations | $ (691) | $ (197) | $ (808) | $ (382) | ||||
Net (loss) from discontinued operations | (3,464) | (260) | (3,969) | (597) | ||||
Total interest in net (loss)/income | $ (4,155) | $ (457) | $ (4,777) | $ (979) | ||||
Denominator: Weighted average units used to compute basic EPU | 1,143,000 | 1,146,000 | 1,143,000 | 1,146,000 | ||||
Denominator: Weighted average units used to compute diluted EPU | 1,143,000 | 1,146,000 | 1,143,000 | 1,146,000 | ||||
Net (loss)/income per unit from continuing operations | $ (0.60) | $ (0.17) | $ (0.71) | $ (0.34) | ||||
Net (loss) per unit from discontinued operations | (3.03) | (0.23) | (3.47) | (0.52) | ||||
Net (loss)/income per limited partner unit, basic | (3.63) | (0.40) | (4.18) | (0.86) | ||||
Net (loss)/income per unit from continuing operations | (0.60) | (0.17) | (0.71) | (0.34) | ||||
Net (loss) per unit from discontinued operations | (3.03) | (0.23) | (3.47) | (0.52) | ||||
Net (loss)/income per common unit, diluted | $ (3.63) | $ (0.40) | $ (4.18) | $ (0.86) | ||||
Preferred Unitholders' [Member] | ||||||||
Earnings Per Unit [Line Items] | ||||||||
Net (loss)/income from continuing operations | $ 300 | $ 1,179 | $ 900 | $ 1,788 | ||||
Net (loss) from discontinued operations | ||||||||
Total interest in net (loss)/income | $ 300 | $ 1,179 | $ 900 | $ 1,788 | ||||
Denominator: Weighted average units used to compute basic EPU | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ||||
Denominator: Weighted average units used to compute diluted EPU | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | ||||
Net (loss)/income per unit from continuing operations | $ 0.20 | $ 0.79 | $ 0.60 | $ 1.19 | ||||
Net (loss) per unit from discontinued operations | ||||||||
Net (loss)/income per limited partner unit, basic | 0.20 | 0.79 | 0.60 | 1.19 | ||||
Net (loss)/income per unit from continuing operations | 0.20 | 0.79 | 0.60 | 1.19 | ||||
Net (loss) per unit from discontinued operations | ||||||||
Net (loss)/income per common unit, diluted | $ 0.20 | $ 0.79 | $ 0.60 | $ 1.19 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)Number | |
Letter of credit, outstanding | |
Cash collateral on deposit | 3,000 |
Deane Mining, LLC [Member] | |
Letter of credit, outstanding | 400 |
Sands Hill Mining, LLC [Member] | Surety Bond Obligations [Member] | |
Letter of credit, outstanding | 2,000 |
Third Parties [Member] | |
Letter of credit, outstanding | $ 41,600 |
January 2019 through December 2019 [Member] | |
Number of gallons | Number | 2,000,000 |
Purchase price of diesel fuel | $ 4,300 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Delivery Commitments (Details) | 9 Months Ended |
Sep. 30, 2019T | |
Commitments and Contingencies Disclosure [Abstract] | |
Tons, 2019 Q4 | 762,000 |
Tons, 2020 | 838,000 |
Tons, 2021 | 120,000 |
Number of customers, 2019 Q4 | 13 |
Number of customers, 2020 | 3 |
Number of customers, 2021 | 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Lease and Royalty Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease expense | $ 1,239 | $ 1,105 | $ 3,621 | $ 2,334 |
Royalty expense | $ 3,150 | $ 2,564 | $ 9,602 | $ 8,022 |
Major Customers - Summary of Ma
Major Customers - Summary of Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||||
Receivable balance | $ 11,788 | $ 11,788 | $ 12,481 | ||
Sales | 42,266 | $ 60,037 | 140,503 | $ 144,540 | |
Javelin Global [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Receivable balance | $ 2,261 | 2,261 | $ 4,347 | ||
Sales | $ 36,442 | $ 29,267 |
Revenue (Details Narrative)
Revenue (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sales Revenue, Net [Member] | ||||
Partnership total revenue, percentage | 99.00% | 99.00% | 99.00% | 99.00% |
Other Revenue [Member] | ||||
Partnership total revenue, percentage | 1.00% | 1.00% | 1.00% | 1.00% |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total | $ 42,266 | $ 60,037 | $ 140,503 | $ 144,540 |
Steam Coal Revenue [Member] | ||||
Total | 27,560 | 29,462 | 82,291 | 78,631 |
Met Coal Revenue [Member] | ||||
Total | 14,261 | 29,875 | 56,396 | 64,004 |
Other Revenue [Member] | ||||
Total | 445 | 700 | 1,816 | 1,905 |
Central Appalachia [Member] | ||||
Total | 25,057 | 43,890 | 90,686 | 102,998 |
Central Appalachia [Member] | Steam Coal Revenue [Member] | ||||
Total | 10,746 | 13,979 | 33,884 | 38,840 |
Central Appalachia [Member] | Met Coal Revenue [Member] | ||||
Total | 14,261 | 29,875 | 56,396 | 64,004 |
Central Appalachia [Member] | Other Revenue [Member] | ||||
Total | 50 | 36 | 406 | 154 |
Northern Appalachia [Member] | ||||
Total | 6,569 | 5,831 | 22,044 | 14,397 |
Northern Appalachia [Member] | Steam Coal Revenue [Member] | ||||
Total | 6,201 | 5,229 | 20,662 | 12,821 |
Northern Appalachia [Member] | Met Coal Revenue [Member] | ||||
Total | ||||
Northern Appalachia [Member] | Other Revenue [Member] | ||||
Total | 368 | 602 | 1,382 | 1,576 |
Rhino Western [Member] | ||||
Total | 10,614 | 10,254 | 27,746 | 26,980 |
Rhino Western [Member] | Steam Coal Revenue [Member] | ||||
Total | 10,613 | 10,254 | 27,745 | 26,970 |
Rhino Western [Member] | Met Coal Revenue [Member] | ||||
Total | ||||
Rhino Western [Member] | Other Revenue [Member] | ||||
Total | 1 | 1 | 10 | |
Other [Member] | ||||
Total | 26 | 62 | 27 | 165 |
Other [Member] | Steam Coal Revenue [Member] | ||||
Total | ||||
Other [Member] | Met Coal Revenue [Member] | ||||
Total | ||||
Other [Member] | Other Revenue [Member] | ||||
Total | $ 26 | $ 62 | $ 27 | $ 165 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) | 3 Months Ended |
Mar. 31, 2019shares | |
Fair Value Disclosures [Abstract] | |
Number of shares sold, shares | 104,100 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Other Significant Noncash Transactions [Line Items] | ||
Interest paid | $ 3,300 | $ 4,900 |
Accounts Payable [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Additions to property, plant, and equipment | $ 3,100 | $ 1,100 |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Sep. 30, 2019Segments | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 42,266 | $ 60,037 | $ 140,503 | $ 144,540 |
DD&A | 3,525 | 3,655 | 10,511 | 10,841 |
Interest expense | 1,872 | 2,831 | 5,308 | 6,629 |
Net (loss)/income | (8,344) | (1,276) | (9,212) | (2,969) |
Central Appalachia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 25,057 | 43,890 | 90,686 | 102,998 |
DD&A | 1,992 | 2,200 | 5,756 | 6,659 |
Interest expense | 1 | |||
Net (loss)/income | (1,226) | 3,619 | 6,517 | 5,546 |
Northern Appalachia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 6,569 | 5,831 | 22,044 | 14,397 |
DD&A | 438 | 385 | 1,280 | 825 |
Interest expense | ||||
Net (loss)/income | (2,157) | (881) | (3,971) | (3,473) |
Rhino Western [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 10,614 | 10,254 | 27,746 | 26,980 |
DD&A | 1,062 | 978 | 3,265 | 3,080 |
Interest expense | ||||
Net (loss)/income | 1,501 | 56 | 2,494 | 956 |
Segment Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 26 | 62 | 27 | 165 |
DD&A | 33 | 92 | 210 | 277 |
Interest expense | 1,872 | 2,831 | 5,308 | 6,628 |
Net (loss)/income | $ (6,462) | $ (4,070) | $ (14,252) | $ (5,998) |